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Ceridian (CDAY) Boosts Retail Sector With Dayforce Innovation

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Ceridian HCM is expanding its footprint in the retail sector with the recent announcement of upcoming retail product innovations in its Dayforce platform.

Through its Dayforce platform, Ceridian uniquely offers workforce management (WFM) and global payroll capabilities on a single platform.

This empowers retailers and the hospitality sector to effectively manage the workforce, enhance employee engagement and make informed staffing decisions for increased operational agility.

With more than 1,280 retailers worldwide benefiting from Ceridian's solutions — including prominent brands like American Dream, Costa Coffee, and SPARC Group — the firm stands at the forefront of optimizing workforce dynamics.

The Dayforce platform's latest features, such as machine learning-powered forecasting, shift marketplace for workforce flexibility, next-generation labor planning and a reimagined time experience, exemplify Ceridian's commitment to providing innovative solutions that meet the evolving needs of the retail industry.

Ceridian HCM Price and Consensus

 

Ceridian HCM Price and Consensus

Ceridian HCM price-consensus-chart | Ceridian HCM Quote

 

Dayforce Expands Ceridian's Portfolio Aids Growth

The latest move by Ceridian is in sync with the dynamic needs of the retail industry, offering innovative solutions through its Dayforce platform.

CDAY witnessed a substantial 35% year-over-year growth in Dayforce recurring revenues at constant currency in the third quarter of 2023.

The increase in Dayforce recurring revenues is primarily attributed to the platform's continuous adoption of new clients and Ceridian HCM's emphasis on innovation.

Ceridian expands its portfolio with the introduction of Dayforce Co-Pilot, driven by generative AI, empowering organizations to enhance workforce productivity across the Dayforce suite.

The commitment to Ceridian’s innovative portfolio is helping it win customers like Microsoft (MSFT - Free Report) and Swissport.

In third-quarter 2023, Ceridian HCM partnered with Microsoft to launch Dayforce Co-Pilot, a generative AI assistant, leveraging Microsoft's capabilities and OpenAI connection to automate tasks and enhance productivity in the Dayforce human capital management platform.

In October, the global aviation service provider Swissport selected Ceridian's Dayforce platform to optimize payroll, standardize global human capital management and enhance workforce engagement for its 55,000 employees across 292 airports worldwide.

Solid 2023 View

Ceridian’s expanding clientele and strong Dayforce portfolio aid top-line growth. For the fourth quarter of 2023, management expects revenues to be between $398 million and $401 million, indicating an increase of 18-19% on a GAAP basis and at constant currency (cc).

Dayforce recurring revenues, excluding float, are projected in the range of $255-$257 million, suggesting a 29-30% rise from third-quarter 2023 levels on a GAAP basis and at cc.

The Zacks Consensus Estimate for fourth-quarter of 2023 revenues is pegged at $400.09 million, indicating 19.04% growth from fourth-quarter of 2022 levels. The consensus mark for earnings is pegged at 32 cents per share, unchanged in the past 30 days.

For 2023, the company expects revenues to be between $1.512 billion and $1.515 billion, suggesting a jump of 21-23% at cc.

The Zacks Consensus Estimate for 2023 revenues is pegged at $1.51 billion, indicating 21.5% growth from a year ago. The consensus mark for earnings is pegged at $1.33 per share, unchanged in the past 30 days.

Zacks Rank & Other Stocks to Consider

Currently, Ceridian HCM sports a Zacks Rank #1 (Strong Buy).

Ceridian’s shares have declined 1.6% in the past six months compared with the Zacks Computer & Technology sector’s rally of 7.7%.

Some other top-ranked stocks in the broader technology sector are DoorDash (DASH - Free Report) and Camtek (CAMT - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

DASH and CAMT shares have returned 26.9% and 102.4%, respectively, on past six-month period.

Long-term earnings growth rates for DoorDash and Camtek are pegged at 42.13% and 12.26%, respectively.


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