Online education Stride (NYSE: LRN) will be announcing earnings results this Tuesday afternoon. Here’s what to expect.
Stride beat analysts’ revenue expectations by 4.2% last quarter, reporting revenues of $653.6 million, up 22.4% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates. It reported 235,300 enrollments, up 21.7% 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 11.9% year on year to $616.5 million, slowing from the 14.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.26 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 3.6% on average.
Looking at Stride’s peers in the media & entertainment segment, some have already reported their Q3 results, giving us a hint as to what we can expect. IMAX delivered year-on-year revenue growth of 16.6%, beating analysts’ expectations by 0.6%, and Omnicom Group reported revenues up 4%, in line with consensus estimates. IMAX traded down 1.1% following the results while Omnicom Group was up 3.2%.
Read our full analysis of IMAX’s results here and Omnicom Group’s results here.
Investors in the media & entertainment segment have had steady hands going into earnings, with share prices flat over the last month. Stride is up 1.4% during the same time and is heading into earnings with an average analyst price target of $170.75 (compared to the current share price of $152.11).
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