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Growth in Subscribers to Drive Chegg's (CHGG) Q3 Earnings
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Chegg, Inc. (CHGG - Free Report) is scheduled to report third-quarter 2020 results on Oct 26. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 8.8%.
Q3 Estimates
The Zacks Consensus Estimate for third-quarter earnings is pegged at 12 cents per share, suggesting a decline of 33.3% from 18 cents in the prior-year quarter. Notably, the consensus mark for third-quarter earnings has been stable over the past 30 days. The Zacks Consensus Estimate for revenues stands at $143.9 million, indicating growth of 52.8% from the year-ago quarter.
Factors to Note
Chegg’s third-quarter results are likely to reflect sharp increase in subscribers. Moreover, robust Chegg Services revenues and Required Materials revenues are likely to have benefited the company’s performance in the quarter to be reported. The Zacks Consensus Estimate for to-be-reported quarter's subscribers suggests growth of 63.2% year over year. Moreover, the consensus mark for Chegg Services revenues and Required Materials revenues are pegged at $115 million and $30.2 million, suggesting growth of 66.7% and 21.5% year over year, respectively.
Our proven model doesn’t conclusively predict an earnings beat for Chegg this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Chegg has a Zacks Rank #2 and an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Computer and Technology space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Arrow Electronics, Inc. (ARW - Free Report) has a Zacks Rank #2 and an Earnings ESP of +3.93%.
Avnet, Inc. (AVT - Free Report) has a Zacks Rank #1 and an Earnings ESP of +39.13%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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Growth in Subscribers to Drive Chegg's (CHGG) Q3 Earnings
Chegg, Inc. (CHGG - Free Report) is scheduled to report third-quarter 2020 results on Oct 26. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 8.8%.
Q3 Estimates
The Zacks Consensus Estimate for third-quarter earnings is pegged at 12 cents per share, suggesting a decline of 33.3% from 18 cents in the prior-year quarter. Notably, the consensus mark for third-quarter earnings has been stable over the past 30 days. The Zacks Consensus Estimate for revenues stands at $143.9 million, indicating growth of 52.8% from the year-ago quarter.
Factors to Note
Chegg’s third-quarter results are likely to reflect sharp increase in subscribers. Moreover, robust Chegg Services revenues and Required Materials revenues are likely to have benefited the company’s performance in the quarter to be reported. The Zacks Consensus Estimate for to-be-reported quarter's subscribers suggests growth of 63.2% year over year. Moreover, the consensus mark for Chegg Services revenues and Required Materials revenues are pegged at $115 million and $30.2 million, suggesting growth of 66.7% and 21.5% year over year, respectively.
Chegg, Inc. Price and EPS Surprise
Chegg, Inc. price-eps-surprise | Chegg, Inc. Quote
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Chegg this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Chegg has a Zacks Rank #2 and an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Computer and Technology space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Advanced Micro Devices, Inc. (AMD - Free Report) has a Zacks Rank #2 and an Earnings ESP of +1.30%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arrow Electronics, Inc. (ARW - Free Report) has a Zacks Rank #2 and an Earnings ESP of +3.93%.
Avnet, Inc. (AVT - Free Report) has a Zacks Rank #1 and an Earnings ESP of +39.13%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>