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Stride (LRN) to Report Q4 Earnings: What's in the Offing?

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Stride, Inc. (LRN - Free Report) is slated to release fourth-quarter fiscal 2021 results on Aug 10, after market close.

In the last reported quarter, the company reported impressive earnings and revenues. Its adjusted earnings topped the Zacks Consensus Estimate by 21.3% and rose 159.1% from the year-ago quarter. The company’s revenues also topped the consensus mark by 3.1% and increased 52.4% from the prior-year level.

Its earnings surpassed the consensus mark in each of the trailing six quarters.

Trend in Estimate Revision

The Zacks Consensus Estimate for earnings for the quarter to be reported has remained stable at 17 cents per share over the past 60 days. The estimated figure indicates 41.7% growth from the year-ago earnings of 12 cents per share. The consensus mark for revenues is $388.95 million, suggesting 44.6% year-over-year growth.

Stride, Inc. Price and EPS Surprise

Stride, Inc. Price and EPS Surprise

Stride, Inc. price-eps-surprise | Stride, Inc. Quote

Factors to Note

Persistent demand for online learning options, post the pandemic outbreak, has been benefiting Stride. Furthermore, focus on improving user experience, enhancing teacher tools and strengthening student engagement bodes well. These positives are likely to have boosted enrollments in to-be-reported quarter.

In addition to higher enrollments, the company’s adult learning business is likely to have witnessed stronger-than-expected student retention backed by post pandemic trend toward online and hybrid education, non-traditional educational apps as well as low-cost certificate programs. Its recent acquisitions and partnerships are expected to have contributed to revenues as well.

Additionally, the ongoing focus on cost reduction and operating efficiency is expected to have aided its margin to some extent.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Stride — which share space with Adtalem Global Education Inc. (ATGE - Free Report) , Strategic Education, Inc. (STRA - Free Report) and Universal Technical Institute, Inc. (UTI - Free Report) in the Zacks Schools industry — 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.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Stride currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.