Dayforce Falls To Loss In Q2, Yet Adj. EPS Beats Estimate; Stock Up

(RTTNews) - Dayforce, Inc. (DAY) Wednesday reported second quarter net loss, compared to profit last year, as expenses were comparatively higher than the prior year, despite a grwoth in revenues. On an adjusted basis, earnings per share beat estimates. Further, the company expects increase in third quarter and full year revenues.

Currently, shares are at $59.99, gaining more than 12 percent on a volume of 884,101, while the stock closed at $53.68 on the previous day.

In a separate announcement, Dayforce said its directors have approved a share repurchase program of up to $500 million of its common stock.

The quarterly loss for the human capital management technology company was $1.8 million, or $0.01 per share compared to earnings of $3.1 million or $0.02 per share, a year ago. On an adjusted basis, earnings were $76.2 million or $0.48 per share.

On average, 15 analysts polled by Thomson Reuters expected the company to earn $0.36 per share. Analysts estimates usually exclude special items.

Total revenue increased 16 percent to $423.3 million, up from $365.9 million a year ago. Analysts were looking for $417.54 million.

The share repurchase program has no expiration date, and the company may repurchase shares of common stock from time to time through open market purchases, in privately negotiated transactions

Looking ahead to the third quarter, the company expects revenues in a range of $425 to $430 million, an increase of 13 to 14 percent. Adjusted EBITDA is projected to be $115 to $125 million. Wall Street expects revenue of $430.7 million.

For the full year, Dayforce expects revenue to increase 15 percent to a range of $1.736 to $1.746 billion, while analysts are looking for revenue of $1.74 billion.