Ceridian (CDAY) Q2 Earnings Report Preview: What To Look For

Online payroll and human resource software provider Ceridian (NYSE:CDAY) will be reporting results tomorrow afternoon. Here's what to expect.

Last quarter Ceridian reported revenues of $370.6 million, up 26.4% year on year, beating analyst revenue expectations by 2.6%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter. Gross margin also deteriorated. The company added 186,000 customers to a total of 6,179,000.

Is Ceridian buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Ceridian's revenue to grow 18.9% year on year to $358.3 million, in line with the 20.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.29 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.71%.

With Ceridian being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for finance and HR software stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 9.07% over the last month. Ceridian is up 7.79% during the same time, and is heading into the earnings with analyst price target of $82.46, compared to share price of $70.81.

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The author has no position in any of the stocks mentioned.