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Stride (LRN) Q4 Earnings & Revenues Top Estimates, Shares Up
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Stride, Inc. (LRN - Free Report) reported impressive fourth-quarter fiscal 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Also, the top and the bottom lines grew compared to the year-ago period.
The uptrend in the quarterly result was driven by increased enrollment growth in the Career Learning line, along with increases in revenue per enrollment. The company is optimistic about achieving its long-term 2025 goal, given the boost in enrollment demand.
Stride’s shares rose 8.23% in the after-hour trading session on Aug 15, following the announcement. Investors’ sentiment might have got a boost as a result of the company’s optimistic views on achieving its fiscal 2025 target.
Earnings & Sales in Detail
The company reported $1.01 earnings per share (EPS), beating the Zacks Consensus Estimate of EPS of 86 cents by 17.4%. Earnings recorded year-over-year growth of 53%.
The company’s reported revenues of $483.5 million, which beat the consensus mark of $465 million by 4% and increased 6.2% from the year-ago figure of $455.2 million.
Total quarter-end enrollment declined 1.3% from the prior-year period to 176,100 students due to low contribution from the General Education line.
Segment Details
General Education revenues for the fiscal fourth quarter decreased 12.7% to $295.4 million. Enrollment of General Education dropped 19% year over year to 110,600 students.
Nevertheless, Career Learning revenues for the reported quarter increased 60.9% to $188.1 million. Within the Career Learning umbrella, Middle - High School generated 71.3% revenue growth and Adult generated 23.8% improvement, year over year. Enrollment in Career Learning jumped 56.3% to 65,500 students from the year-ago period.
Revenue per enrollment in Career Learning increased 9.7% from the year-ago period to $2,389. On the other hand, revenue per enrollment in General Education increased 8.3% from the year-ago period to $2,455.
Costs & Margins
The gross profit of the company increased 2.6% to $172.1 million in the reported quarter.
Adjusted operating income rose 20.5% to $64.4 million from $53.5 million reported a year ago. The operating margin increased to 13.3% in the reported quarter from 11.7% in the year-ago period.
Adjusted EBITDA grew 18.9% year over year to $88.8 million in the reported quarter.
FY 2023 Highlights
For the year, EPS was $2.97, reflecting a 17.9% increase from fiscal 2022. Total revenues were up 8.9% to $1.84 billion. The adjusted operating income increased 6.8% to $201 million, compared with $188.2 million in fiscal 2022. Adjusted EBITDA grew 8.5% to $296.2 million from the prior year.
Financials
As of Jun 30, 2023, the cash and cash equivalents totaled $410.8 million, compared with $389.4 million reported in fiscal 2022 end. The long-term debt increased to $413 million as of Jun 30, 2023, from $411.4 million as of Jun 30, 2022.
During fiscal 2023, cash provided by operating activities totaled $203.2 million, compared with $206.9 million in fiscal 2022.
Capital expenditures declined 1.6% to $66.5 million for fiscal 2023, compared with the last year’s reported value.
Long-Term (Through Fiscal 2025) View Sustained
For the long term, Stride projects $1.9-$2.2 billion of revenues and $250-$350 million of adjusted operating income. Also, it expects the gross margin to be between 36% and 39%.
Wynn Resorts, Limited (WYNN - Free Report) reported impressive second-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Also, the top and bottom lines grew year over year.
The uptrend is backed by consistent performance growth in the company’s Macau and North America properties. Wynn Resorts witnessed growth in mass gaming, luxury retail and hotel businesses in Macau, portraying exceptional post-Covid recovery.
American Public Education, Inc. (APEI - Free Report) reported better-than-expected second-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. However, both metrics declined on a year-over-year basis.
The company’s results benefited from the solid contributions of the American Public University System and Hondros College of Nursing segment as well as Graduate School USA revenues, included in Corporate and Other and cost-saving initiatives. However, the dismal performance of the Rasmussen University segment ailed the other segments’ tailwind to some extent.
Hasbro, Inc. (HAS - Free Report) reported mixed second-quarter fiscal 2023 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The metrics declined on a year-over-year basis. The dismal performances of Franchise Brands, Partner Brands and Portfolio Brands affected the top line.
The company announced the sale of its eOne Film and TV business to Lionsgate for approximately $500 million. HAS anticipates the deal to strengthen its financial flexibility and retire its floating rate debt (by approximately $400 million). It expects to close the deal by 2023 end.
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Stride (LRN) Q4 Earnings & Revenues Top Estimates, Shares Up
Stride, Inc. (LRN - Free Report) reported impressive fourth-quarter fiscal 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Also, the top and the bottom lines grew compared to the year-ago period.
The uptrend in the quarterly result was driven by increased enrollment growth in the Career Learning line, along with increases in revenue per enrollment. The company is optimistic about achieving its long-term 2025 goal, given the boost in enrollment demand.
Stride’s shares rose 8.23% in the after-hour trading session on Aug 15, following the announcement. Investors’ sentiment might have got a boost as a result of the company’s optimistic views on achieving its fiscal 2025 target.
Earnings & Sales in Detail
The company reported $1.01 earnings per share (EPS), beating the Zacks Consensus Estimate of EPS of 86 cents by 17.4%. Earnings recorded year-over-year growth of 53%.
The company’s reported revenues of $483.5 million, which beat the consensus mark of $465 million by 4% and increased 6.2% from the year-ago figure of $455.2 million.
Stride, Inc. Price, Consensus and EPS Surprise
Stride, Inc. price-consensus-eps-surprise-chart | Stride, Inc. Quote
Total quarter-end enrollment declined 1.3% from the prior-year period to 176,100 students due to low contribution from the General Education line.
Segment Details
General Education revenues for the fiscal fourth quarter decreased 12.7% to $295.4 million. Enrollment of General Education dropped 19% year over year to 110,600 students.
Nevertheless, Career Learning revenues for the reported quarter increased 60.9% to $188.1 million. Within the Career Learning umbrella, Middle - High School generated 71.3% revenue growth and Adult generated 23.8% improvement, year over year. Enrollment in Career Learning jumped 56.3% to 65,500 students from the year-ago period.
Revenue per enrollment in Career Learning increased 9.7% from the year-ago period to $2,389. On the other hand, revenue per enrollment in General Education increased 8.3% from the year-ago period to $2,455.
Costs & Margins
The gross profit of the company increased 2.6% to $172.1 million in the reported quarter.
Adjusted operating income rose 20.5% to $64.4 million from $53.5 million reported a year ago. The operating margin increased to 13.3% in the reported quarter from 11.7% in the year-ago period.
Adjusted EBITDA grew 18.9% year over year to $88.8 million in the reported quarter.
FY 2023 Highlights
For the year, EPS was $2.97, reflecting a 17.9% increase from fiscal 2022. Total revenues were up 8.9% to $1.84 billion. The adjusted operating income increased 6.8% to $201 million, compared with $188.2 million in fiscal 2022. Adjusted EBITDA grew 8.5% to $296.2 million from the prior year.
Financials
As of Jun 30, 2023, the cash and cash equivalents totaled $410.8 million, compared with $389.4 million reported in fiscal 2022 end. The long-term debt increased to $413 million as of Jun 30, 2023, from $411.4 million as of Jun 30, 2022.
During fiscal 2023, cash provided by operating activities totaled $203.2 million, compared with $206.9 million in fiscal 2022.
Capital expenditures declined 1.6% to $66.5 million for fiscal 2023, compared with the last year’s reported value.
Long-Term (Through Fiscal 2025) View Sustained
For the long term, Stride projects $1.9-$2.2 billion of revenues and $250-$350 million of adjusted operating income. Also, it expects the gross margin to be between 36% and 39%.
Zacks Rank
Stride currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Consumer Discretionary Releases
Wynn Resorts, Limited (WYNN - Free Report) reported impressive second-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Also, the top and bottom lines grew year over year.
The uptrend is backed by consistent performance growth in the company’s Macau and North America properties. Wynn Resorts witnessed growth in mass gaming, luxury retail and hotel businesses in Macau, portraying exceptional post-Covid recovery.
American Public Education, Inc. (APEI - Free Report) reported better-than-expected second-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate. However, both metrics declined on a year-over-year basis.
The company’s results benefited from the solid contributions of the American Public University System and Hondros College of Nursing segment as well as Graduate School USA revenues, included in Corporate and Other and cost-saving initiatives. However, the dismal performance of the Rasmussen University segment ailed the other segments’ tailwind to some extent.
Hasbro, Inc. (HAS - Free Report) reported mixed second-quarter fiscal 2023 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The metrics declined on a year-over-year basis. The dismal performances of Franchise Brands, Partner Brands and Portfolio Brands affected the top line.
The company announced the sale of its eOne Film and TV business to Lionsgate for approximately $500 million. HAS anticipates the deal to strengthen its financial flexibility and retire its floating rate debt (by approximately $400 million). It expects to close the deal by 2023 end.