Dayforce DAY is set to report its third-quarter 2024 results on Oct. 30.

DAY expects third-quarter 2024 revenues between $425 million and $430 million, indicating growth between 13% and 14% on a GAAP and constant-currency basis.

The Zacks Consensus Estimate for third-quarter earnings has been unchanged at 45 cents per share over the past 60 days, suggesting 21.62% growth from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $428.43 million, indicating an increase of 13.49% from the figure reported in the year-ago quarter.

Dayforce, Inc. Price and EPS Surprise

Dayforce, Inc. price-eps-surprise | Dayforce, Inc. Quote

DAY’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, the average surprise being 27.28%.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Let us see how things have shaped up for the upcoming announcement:

Factors to Consider

With more than 200 compliance updates in the first half of 2024, Dayforce shows a strong commitment to supporting clients to meet regulatory requirements, which is extremely important for attracting and retaining clients in its heavily regulated industry. This is expected to positively impact DAY’s top-line growth in the to-be-reported quarter.

DAY recently launched the Dayforce Payroll in Singapore, which is expanding and capturing a new customer base in the Asia-Pacific region. This has opened up revenue opportunities in a growing market with a high demand for efficient payroll solutions. Third-quarter 2024 revenues are highly likely to have been positively impacted by this.

Dayforce has been strategic in targeting sectors like retail, manufacturing and hospitality, which demonstrates demand resilience. In a dynamic macroeconomic environment, such pivots can aid DAY in navigating economic uncertainties with ease. This bodes well for the company’s bottom-line growth.

With the momentum from the second quarter, whereby revenues and profitability showed considerable improvement, Dayforce is poised to carry this into the third quarter. Adjusted EBITDA growth, along with high free cash flow, demonstrates operational efficiency and solid financial health.

What Our Model Says About DAY Stock

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.

Dayforce has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.