Latest news with #Ceridian
Yahoo
5 days ago
- Business
- Yahoo
Construction to begin on St Petersburg's $800 million SkyTown development
A mixed-use development that will bring thousands of apartments and a grocery store to St. Petersburg's SkyWay Marina District is starting to take shape after receiving funding from public and private backers. The project, dubbed SkyTown, is slated for the former Ceridian office campus at 3201 34th St. S. Coral Gables-based developer Altis Cardinal bought the 32-acre property in 2021 for $40 million. 'We're the largest community that has been approved in all of St Pete,' said Frank Guerra, principal of Altis Cardinal. 'We're putting a 24-hour kind of living situation together on this one 32-acre parcel.' It will be built in six phases and is expected to cost between $750 and $800 million. Once complete, it will add 2,084 apartments, 69,000 square feet of retail space including a Sprouts Farmers Market and 120,000 square feet of self-storage. This is the first Sprouts Farmers Market to open in St. Petersburg, and is slated to open in October. It joins four other locations in Pinellas County and 19 around Tampa Bay. On Tuesday, Altis Cardinal, secured a $68 million construction loan from Third Fifth Bank, according to records filed with the Pinellas County Clerk's Office. The developer also got approved for a $4.5 million forgivable loan from the City of St. Petersburg in April and a $5.5 million allocation from Pinellas County through the Penny for Pinellas sales tax. All this funding will go toward the first phase, which will feature 401 apartments and 12,000 square feet of ground-floor retail. Of those apartments, 121 will be designated as workforce housing. About half will be reserved for households that earn up to 120% of the area median income, which is currently about $87,600 for a single person or $125,160 for a family of four. The other half will be for those who earn up to 80% of the area median income — $58,450 for a single person or $83,450 for a family of four. People could start moving in by the the third quarter of 2027. Guerra said they're already in talks to fill the retail space below. He envisions something neighborhood-oriented like a wine bar, restaurant, coffee shop, bakery or day spa. Building out the entire project could take eight to ten years. The Skyway Marina District is currently undergoing a transformation, with at least four other residential projects popping up within a stone's throw of SkyTown. But Guerra said what sets his development apart is the 'town-square' feel it will have. 'We are making a walkable community where people can get everything they need on site,' said Guerra. 'We think our retail will draw people from outside the area.'
Yahoo
07-05-2025
- Business
- Yahoo
Dayforce (NYSE:DAY) Posts Better-Than-Expected Sales In Q1 But Stock Drops
Online payroll and human resource software provider Dayforce (NYSE:DAY) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 11.7% year on year to $481.8 million. On the other hand, next quarter's revenue guidance of $411 million was less impressive, coming in 11.4% below analysts' estimates. Its non-GAAP profit of $0.58 per share was 6.9% above analysts' consensus estimates. Is now the time to buy Dayforce? Find out in our full research report. Dayforce (DAY) Q1 CY2025 Highlights: Revenue: $481.8 million vs analyst estimates of $476.8 million (11.7% year-on-year growth, 1.1% beat) Adjusted EPS: $0.58 vs analyst estimates of $0.54 (6.9% beat) Adjusted EBITDA: $156.7 million vs analyst estimates of $150.7 million (32.5% margin, 4% beat) The company slightly lifted its revenue guidance for the full year to $1.76 billion at the midpoint from $1.75 billion Operating Margin: 6.4%, down from 9.4% in the same quarter last year Free Cash Flow Margin: 4%, down from 11.7% in the previous quarter Market Capitalization: $9.21 billion "We kicked off the year with strong first quarter results and excellent sales momentum,' said David Ossip, Chair and CEO of Dayforce. Company Overview Founded in 1992 as Ceridian, an outsourced payroll processor and transformed after the 2012 acquisition of Dayforce, Dayforce (NYSE:DAY) is a provider of cloud based payroll and HR software targeted at mid-sized businesses. Sales Growth Reviewing a company's long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last three years, Dayforce grew its sales at a 18.7% annual rate. Although this growth is acceptable on an absolute basis, it fell slightly short of our standards for the software sector, which enjoys a number of secular tailwinds. Dayforce Quarterly Revenue This quarter, Dayforce reported year-on-year revenue growth of 11.7%, and its $481.8 million of revenue exceeded Wall Street's estimates by 1.1%. Company management is currently guiding for a 2.9% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 9.8% over the next 12 months, a deceleration versus the last three years. This projection doesn't excite us and suggests its products and services will see some demand headwinds. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Reuters
07-05-2025
- Business
- Reuters
Dayforce sees lower-than-expected second-quarter revenue on muted spending
May 7 (Reuters) - Human resources software provider Dayforce (DAY.N), opens new tab on Wednesday forecast second-quarter revenue below market estimates, anticipating reduced spending on its payroll and HR services amid macroeconomic uncertainty. Shares of the Minneapolis, Minnesota-based company fell 10% following the results. Job growth in the U.S. was choppy in the first quarter, slowing more than expected in January before picking up pace in February, at a time when the labor market outlook was clouded by the country's trade policy changes. The murky economic backdrop has been particularly hitting small- and medium-sized businesses, forcing them to reassess their budgets. Dayforce expects its total second-quarter revenue to be between $454 million and $460 million, below analysts' average estimate of $465.5 million, according to data compiled by LSEG. It forecast full-year revenue between $1.93 billion and $1.94 billion, in line with estimates of $1.93 billion. The projections come in contrast with those of larger rival ADP (ADP.O), opens new tab, which raised its annual revenue forecast last week on the back of resilient enterprise demand and recent acquisitions. Dayforce, formerly known as Ceridian, provides cloud-based payroll, workforce and human capital management software to enterprise clients globally. The company in February announced a workforce reduction of about 5%, aiming to streamline its operations and achieve annual cost savings of about $65 million. It posted total revenue of $481.8 million for the quarter ended March 31, compared with expectations of $476.7 million. Excluding float, the total quarterly revenue was $426.5 million. Float revenue refers to the earnings or interest a company generates from holding cash or other liquid assets for a period before using them for their intended purpose. The company earned 58 cents per share on an adjusted basis in the first quarter, compared with estimates of 55 cents per share.
Yahoo
31-03-2025
- Business
- Yahoo
3 Reasons DAY is Risky and 1 Stock to Buy Instead
Dayforce trades at $58.01 per share and has stayed right on track with the overall market, losing 5.3% over the last six months while the S&P 500 is down 4.1%. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation. Is there a buying opportunity in Dayforce, or does it present a risk to your portfolio? See what our analysts have to say in our full research report, it's free. Even though the stock has become cheaper, we're swiping left on Dayforce for now. Here are three reasons why DAY doesn't excite us and a stock we'd rather own. Founded in 1992 as Ceridian, an outsourced payroll processor and transformed after the 2012 acquisition of Dayforce, Dayforce (NYSE:DAY) is a provider of cloud based payroll and HR software targeted at mid-sized businesses. Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last three years, Dayforce grew its sales at a 19.8% compounded annual growth rate. Although this growth is acceptable on an absolute basis, it fell slightly short of our standards for the software sector, which enjoys a number of secular tailwinds. For software companies like Dayforce, gross profit tells us how much money remains after paying for the base cost of products and services (typically servers, licenses, and certain personnel). These costs are usually low as a percentage of revenue, explaining why software is more lucrative than other sectors. Dayforce's gross margin is substantially worse than most software businesses, signaling it has relatively high infrastructure costs compared to asset-lite businesses like ServiceNow. As you can see below, it averaged a 50.7% gross margin over the last year. Said differently, Dayforce had to pay a chunky $49.29 to its service providers for every $100 in revenue. Many software businesses adjust their profits for stock-based compensation (SBC), but we prioritize GAAP operating margin because SBC is a real expense used to attract and retain engineering and sales talent. This is one of the best measures of profitability because it shows how much money a company takes home after developing, marketing, and selling its products. Analyzing the trend in its profitability, Dayforce's operating margin decreased by 2.9 percentage points over the last year. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Its operating margin for the trailing 12 months was 5.9%. Dayforce isn't a terrible business, but it doesn't pass our bar. After the recent drawdown, the stock trades at 4.9× forward price-to-sales (or $58.01 per share). Investors with a higher risk tolerance might like the company, but we think the potential downside is too great. We're pretty confident there are superior stocks to buy right now. Let us point you toward the most entrenched endpoint security platform on the market. The elections are now behind us. With rates dropping and inflation cooling, many analysts expect a breakout market - and we're zeroing in on the stocks that could benefit immensely. Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
