Why Ceridian HCM Holding Stock Rallied 35% Over The Last Month

by Trefis Team
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Ceridian HCM Holding (NYSE:CDAY), a company that develops human capital management software, has seen its stock price rise by about 35% over the last month. The rally was likely driven partly by stronger than expected Q3 results, with adjusted EPS standing at $0.11, about $0.02 ahead of consensus. The beat was driven by strong uptake of the company’s Dayforce cloud-based product, which saw recurring revenues grow by almost 33% year-over-year to about $110 million. The company expects Dayforce revenue to accelerate over Q4 as well.
The company also marginally raised its full-year revenue guidance to between $822 million and $825 million (up about 1.3% from previous guidance at the mid-point)

We ‘step back’ from these recent swings to review Ceridian HCM Holding’s performance over the last few years, as a context for what might come next. Our Interactive dashboard, Why Has Ceridian HCM Stock Rallied Over The Last Month? reviews the near term reasons and the big picture.

The context for the last few years:

A closer look At Ceridian HCM Holding’s  Total Revenues over the last few years and the outlook

 Total Revenues for Ceridian HCM Holding increased from $671 Mil in 2017 to $746 Mil in 2018; an increase of 11.3%. This compares with Total Revenues growth of 7.60% in 2017. We expect Total Revenues growth to be 9.9% in 2019.

A closer look At Ceridian HCM Holding’s  Total Expenses over the last few years and the outlook

Total Expense for Ceridian HCM Holding moderately increased from $725 Mil in 2017 to $777 Mil in 2018; an increase of 7.16%. This compares with Total Expense growth of 0.402% in 2017. We expect Total Expense growth to be -1% in 2019.

How does Ceridian HCM Holding’s  Revenue Growth compare with rivals?

For more information on how Ceridian HCM Holding’s Revenue Growth compares with rivals, view our interactive dashboard analysis.

How has  Ceridian HCM Holding’s EBT trended?

EBT for Ceridian HCM Holding increased substantially from -$54.1 Mil in 2017 to -$30.4 Mil in 2018. We expect EBT to increase to $50 Mil in 2019.

How has Ceridian HCM Holding’s  Net Income and EPS trended?

For more information on Ceridian HCM Holding’s Net Income and EPS  view our interactive dashboard analysis.

 

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