Insights

Why Ceridian Stock Spiked Today

Shares of Ceridian HCM Holding Inc. (NYSE: CDAY), a human capital software company, were climbing today after the company’s second-quarter results beat analysts’ consensus top- and bottom-line estimates.

The tech stock had gained 10.4% as of 2:52 p.m. ET. 

So what

The company reported Q2 revenue of $301.2 million, which was an increase of 20% year over year and ahead of Wall Street’s consensus average of about $294.5 million. Ceridian’s non-GAAP (generally accepted accounting principles) earnings of $0.21 per share — up from $0.12 in the year-ago quarter — were also far ahead of analysts’ consensus estimate of $0.11 per share. 

Image source: Getty Images.

“In the second quarter, we continued to execute well against both our growth and profitability objectives, as driven by the growth of Dayforce recurring revenue and continued expansion of cloud recurring gross margin,” Ceridian’s Co-CEO David Ossip said in a press release.  

Investors were clearly pleased with those results and likely also happy to see that the company’s platform, called Dayforce, increased its recurring revenue by 29% compared to the year-ago quarter, to $194.3 million.  

Ceridian’s cloud revenue also made significant gains, with sales jumping 25.5% to $262.9 million.  

Now what 

The company’s strong performance in Q2 led to Ceridian’s management raising its guidance for the full year. 

The company now expects 2022 revenue to be in the range of between $1.21 billion to $1.23 billion, up from management’s previous range of between $1.20 billion to $1.23 billion. Additionally, Ceridian’s 2022 earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance is now in the range of between $210 million to $225 million, up from the previous guidance of between $190 million to $205 million. 

With strong quarterly results and the company raising its full-year guidance, it’s clear why investors are pushing up this tech stock today. 

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Rebate Rewards

Level 2 Rebate

Deposit $2,000 and get $200 Rebate
$ 200 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $2,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $200 Rebate
Popular

Level 1 Rebate

Deposit $1,000 and get $100 Rebate
$ 100 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $1,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $100 Rebate

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here To Get Started
EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here For More Info