CERIDIAN HCM HOLDING Reports Second Quarter FY2023 Earnings Results on June 30, 2023
August 10, 2023
🌥️Earnings Overview
On June 30, 2023, CERIDIAN HCM HOLDING ($NYSE:CDAY) reported their earnings results for the second quarter of FY2023. Revenue for the quarter was USD 365.9 million, a 21.5% increase from the same period in the prior year. Net income was USD 3.1 million, a 115.7% rise year-over-year.
Market Price
The stock opened at $68.8 and closed at $67.0, showing a 4.9% decrease from its previous closing price of $70.5. This marked the lowest closing price for the company since April of this year. The disappointing results sent investors into a panic, as shares of the company dropped over the course of the day. CERIDIAN HCM HOLDING has seen increasing success in the past few years, with record profits and a growing customer base.
However, this quarter’s results show that the company may be facing some headwinds that could negatively impact its future growth. Investors will be keeping a close eye on the company’s performance in the coming months to see if they will be able to turn things around. Despite the disappointing earnings results, CERIDIAN HCM HOLDING is still one of the most trusted and reliable companies in the Human Capital Management space. They are constantly innovating and working to make their platform even better for customers. As such, investors may be more willing to wait and see how the company recovers before selling off their shares. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CDAY. More…
| Total Revenues | Net Income | Net Margin |
| 1.39k | -13.2 | -1.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CDAY. More…
| Operations | Investing | Financing |
| 186.9 | -75.3 | -1.06k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CDAY. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.12k | 5.88k | 14.4 |
Key Ratios Snapshot
Some of the financial key ratios for CDAY are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 18.3% | 6.1% | 4.5% |
| FCF Margin | ROE | ROA |
| 5.6% | 1.8% | 0.5% |
Analysis
GoodWhale’s analysis of CERIDIAN HCM HOLDING’s financial and business fundamentals has given it a medium risk rating. This means that while there could be opportunities for growth and stability, there are also some risks involved that should be considered before making an investment decision. Our risk warnings extend beyond just financial considerations. We have detected two risk warnings in the company’s cashflow statement that any investor should take into account before investing. Become a registered user with GoodWhale to view these warnings in full and understand how they could affect your investment decision. GoodWhale’s ratings and risk warnings provide an objective assessment of the company’s strengths and weaknesses, allowing you to make informed decisions on whether or not CERIDIAN HCM HOLDING is a suitable investment for you. More…
Peers
Workiva Inc, Weave Communications Inc, My Rewards International Ltd are all competitors in the same industry.
– Workiva Inc ($NYSE:WK)
Workiva Inc is a provider of cloud-based solutions for enterprise productivity. The company has a market cap of 3.82B as of 2022 and a Return on Equity of -224.13%. Workiva’s solutions are used by organizations to manage their financial reporting, compliance, and data management processes. The company’s products are used by over 3,000 customers in more than 100 countries. Workiva was founded in 2008 and is headquartered in Ames, Iowa.
– Weave Communications Inc ($NYSE:WEAV)
Weave Communications Inc is a US-based company that provides cloud-based communication solutions for small businesses. The company has a market capitalization of 395.09M as of 2022 and a return on equity of -35.73%. Weave Communications Inc’s products and services include VoIP phone systems, business texting, and CRM integration. The company serves customers in the United States, Canada, and Australia.
Summary
Investors in CERIDIAN HCM HOLDING were disappointed on June 30, 2023, when the company reported their second quarter FY2023 earnings. Total revenue amounted to USD 365.9 million, a 21.5% year-over-year increase, but net income was only USD 3.1 million, a 115.7% increase compared to the same period from the prior year. Despite the positive year-over-year growth, investors were not impressed and the stock price moved down on the news. Investors may want to do further research on the company before investing in order to make an informed decision.
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