Online education Stride (NYSE: LRN) will be reporting earnings this Tuesday after the bell. Here’s what to look for.
Stride beat analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $620.9 million, up 12.7% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and revenue guidance for next quarter missing analysts’ expectations significantly. It reported 247,700 enrollments, up 11.3% year on year.
Is Stride a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Stride’s revenue to grow 6.9% year on year to $627.9 million, slowing from the 16.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.32 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Stride has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.1% on average.
With Stride being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for media & entertainment stocks. However, there has been positive investor sentiment in the segment, with share prices up 2.2% on average over the last month. Stride is up 10% during the same time and is heading into earnings with an average analyst price target of $105 (compared to the current share price of $73.19).
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