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Stride (LRN) Introduces New Long-Term Targets, Stock Up

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Stride, Inc. (LRN - Free Report) unveiled new long-term targets (through 2028) and updated its long-term strategy at an Investor Day. Shares of the company inched up 0.07% in the after-hours trading session on Nov 14.

Revenues are expected in the range of $2.7-$3.3 billion, adjusted operating income in the range of $415-$585 million and earnings per share of $6.15-$8.35.

The company’s long-term targets demonstrate sustained growth and leverage in the underlying business.

Stride’s Price Performance

Shares of Stride have risen by 44.7% in the past three months compared with the Zacks Schools industry’s growth of 17.3% and the S&P 500 index’s 2.1% increase.

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In the fiscal first quarter, its revenues grew 12.9% year over year, driven by General Education and Career Learning enrollment strength. Adjusted EBITDA of $39.8 million was significantly up from $3 million a year ago.

Enrollment also grew 8.1% in the fiscal first quarter, backed by growth across both segments. General Education enrollment grew by 4.7% and Career Learning enrollment rose by 14.1%. Revenue per enrollment in General Education and Career Learning increased 7.4% and 5.7%, respectively, from the year-ago period.

For the fiscal second quarter, revenues are expected to range within $490-$510 million versus $458.4 million reported a year ago. Adjusted operating income is likely to range between $80 million and $90 million, up from $76.3 million reported in the previous year.

Zacks Rank & Other Key Picks

LRN carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Other top-ranked stocks in the same space are:

American Public Education, Inc. (APEI - Free Report) provides online and campus-based postsecondary education. American Public has been undertaking initiatives like affordable tuition, online programs, strategic efforts to improve student success and strong digital marketing campaigns that are helping it drive growth. Increased demand for affordable online higher education and nursing programs bodes well for American Public. The APUS segment has been benefiting from an increase in military-related registrations from students utilizing TA and improvements made by the Army to the ArmyIgnitED system.

APEI currently sports a Zacks Rank #1. The bottom line for 2023 and 2024 shows an improvement of 42.3% and 111.8%, respectively, from a year ago.

Perdoceo Education Corporation (PRDO - Free Report) flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 15.6%, on average.

The Zacks Consensus Estimate for PRDO’s 2023 sales and EPS suggests growth of 26.4% and 1.9%, respectively, from the year-ago period’s levels.

Grand Canyon Education, Inc. (LOPE - Free Report) : This Phoenix, AZ-based company is an education services provider to colleges and universities in the United States and has developed key technological solutions, infrastructure and operational processes to deliver superior services in these areas on a large scale. The company has been benefiting from an increase in the Grand Canyon University traditional campus enrollments and higher revenue per student.

Grand Canyon Education currently sports a Zacks Rank #1. The bottom line for 2023 and 2024 shows an improvement of 17.1% and 9.5%, respectively, from a year ago.

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