Dayforce Inc. (DAY) shares tumbled 5.48% in pre-market trading on Wednesday following the release of its first-quarter 2025 earnings report. Despite posting solid Q1 results, the human capital management technology company's stock took a hit due to weaker-than-expected second-quarter guidance.
For the first quarter, Dayforce reported total revenue of $481.8 million and adjusted earnings per share of $0.58. While these figures demonstrated the company's continued growth, investors seemed more focused on the outlook for the coming months. Dayforce provided second-quarter revenue guidance of $454 million to $460 million, which fell short of analysts' expectations. According to LSEG IBES data, the consensus estimate for Q2 revenue was $465.5 million, above the company's projected range.
The discrepancy between the company's guidance and market expectations appears to be the primary driver behind the stock's pre-market decline. Despite the near-term concerns, Dayforce maintained its full-year 2025 revenue guidance of $1,929 million to $1,944 million, suggesting confidence in its long-term growth prospects. However, the market's immediate reaction indicates that investors are prioritizing the short-term outlook over the full-year projections.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.