Dayforce Set to Report Q2 Earnings: What's in Store for the Stock?

Dayforce DAY is scheduled to release second-quarter 2025 results on Aug. 4.For the to-be-reported quarter, DAY expects revenues between $454 million and $460 million. Excluding float revenues of $46 million, total revenues are expected between $408 million and $414 million.The Zacks Consensus Estimate for second-quarter revenues is pegged at $458.2 million, indicating a year-over-year increase of 8.3%. The consensus mark for earnings is pegged at 52 cents per share, unchanged over the past 30 days, indicating 8.3% year-over-year growth. Dayforce beat the Zacks Consensus Estimate in all the trailing four quarters, resulting in an average surprise of 17.04%. Dayforce, Inc. Price and EPS Surprise Dayforce, Inc. price-eps-surprise | Dayforce, Inc. Quote In terms of share price movement, since first-quarter 2025 results (May 7), DAY shares have increased 6.1%, underperforming the broader Zacks Computer and Technology sector’s appreciation of 14.2% and the Zacks Internet Software industry’s return of 17.2%.  Let us see how things have shaped up for the upcoming announcement.Key Factors to Consider for DAY’s Q2 EarningsDayforce’s second-quarter 2025 results are expected to have benefited from an expanding clientele and a rise in recurring revenue per customer. At the end of the first quarter of 2025 (March 31), 6,929 customers were live on the Dayforce platform, up 5.4% year over year. Recurring revenue per customer for the trailing 12 months hit $167,600, up 11.5% compared to the same year-ago period.The company is deepening its AI capabilities and regulatory support through tools like Dayforce AI Assistant (formerly Dayforce Co-Pilot). Introduction of Dayforce AI Assistant on Mobile for support on iOS and Android, enhancement in the Advanced Experience Hub with personalized updates, improved Dayforce Learning and Dayforce Recruiting workflows, and new direct-to-bank capabilities for Dayforce Wallet are notable developments in recent times. These advancements are expected to have reinforced platform adoption and contributed to top-line growth in the second quarter of 2025.Dayforce’s rich partner base, which includes the likes of Microsoft, is expected to have helped the company attract enterprise clients. Expanding compliance features for global statutory requirements in the United Kingdom, Singapore, Australia and New Zealand is expected to have helped in attracting new clients in the to-be-reported quarter.What Our Model SaysAccording 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 #2 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Stocks to ConsiderHere are a few companies worth considering, as our model indicates that these possess the right combination of factors to exceed earnings expectations in their upcoming releases:Lumentum LITE currently has an Earnings ESP of +5.12% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.Lumentum shares are up 27% year to date. Lumentum is set to report its fourth-quarter fiscal 2025 results on Aug. 12.Datadog DDOG has an Earnings ESP of +2.86% and has a Zacks Rank of #2 at present. Datadog shares have declined 5.1% year to date. Datadog is set to report its second-quarter 2025 results on Aug. 7.Genpact G presently has an Earnings ESP of +0.78% and a Zacks Rank #2. Genpact shares have dropped 1.1% year to date. Genpact is scheduled to report its second-quarter 2025 results on Aug. 7.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Genpact Limited (G): Free Stock Analysis Report Lumentum Holdings Inc. (LITE): Free Stock Analysis Report Datadog, Inc. (DDOG): Free Stock Analysis Report Dayforce, Inc. (DAY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks