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In the last reported quarter, the company saw impressive results. Its adjusted earnings topped the Zacks Consensus Estimate by a whopping 128.2% and increased 120.4% from the year-ago quarter. The company’s revenues of $480.2 million exceeded the consensus mark of $456 million by 5.3% and increased 12.9% from the prior-year level.
Its earnings surpassed the consensus mark in the trailing four quarters, with an average of 44.3%.
Trend in Estimate Revision
The Zacks Consensus Estimate for earnings for the quarter to be reported has been unchanged at $1.34 per share over the past 60 days. This indicates year-over-year growth of 12.6%.
The consensus mark for revenues is $503.79 million, suggesting a year-over-year increase of 9.9%.
Factors to Note
Stride has been banking on Career Learning enrollment strength, increases in revenue per enrollment and Adult Learning growth. Also, a focus on improving the user experience, enhancing teacher tools and strengthening student engagement bodes well. These positives are likely to have boosted enrollments in the fiscal second quarter.
In addition to higher enrollments, LRN’s adult learning business is likely to have witnessed stronger student retention, backed by the online and hybrid education trend, non-traditional educational technologies, and low-cost certificate programs. The ongoing focus on cost reduction and operating efficiency is expected to have aided margins in the fiscal second quarter.
However, higher advertising and marketing expenditure, inflation and other macroeconomic woes are likely to have impacted its profit level to some extent.
For the quarter to be reported, Stride expects revenues of $490-$510 million and adjusted operating income of $80-$90 million. Also, it projects capital expenditure of $15-$18 million.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Stride 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. However, that’s not the case here.
Earnings ESP: LRN has an Earnings ESP of 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.
Stocks Poised to Consider
Here are some stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Shares of MGM Resorts have gained 9.8% in the past year. MGM’s earnings beat estimates in each of the trailing four quarters, the average surprise being 292.7%.
Live Nation Entertainment, Inc. (LYV - Free Report) has an Earnings ESP of +2.68% and a Zacks Rank #3.
Shares of Live Nation Entertainment have rallied 13.4% in the past three months. LYV’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 37.5%.
Hasbro, Inc. (HAS - Free Report) has an Earnings ESP of +4.48% and a Zacks Rank #3.
Shares of Hasbro have declined 15% in the past three months. HAS’ earnings beat estimates in two of the trailing four quarters and missed twice, the negative surprise being 22.4%, on average.
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Stride (LRN) to Report Q2 Earnings: Here's What to Expect
Stride, Inc. (LRN - Free Report) is slated to release second-quarter fiscal 2024 results on Jan 23, after market close.
In the last reported quarter, the company saw impressive results. Its adjusted earnings topped the Zacks Consensus Estimate by a whopping 128.2% and increased 120.4% from the year-ago quarter. The company’s revenues of $480.2 million exceeded the consensus mark of $456 million by 5.3% and increased 12.9% from the prior-year level.
Its earnings surpassed the consensus mark in the trailing four quarters, with an average of 44.3%.
Trend in Estimate Revision
The Zacks Consensus Estimate for earnings for the quarter to be reported has been unchanged at $1.34 per share over the past 60 days. This indicates year-over-year growth of 12.6%.
Stride, Inc. Price and EPS Surprise
Stride, Inc. price-eps-surprise | Stride, Inc. Quote
The consensus mark for revenues is $503.79 million, suggesting a year-over-year increase of 9.9%.
Factors to Note
Stride has been banking on Career Learning enrollment strength, increases in revenue per enrollment and Adult Learning growth. Also, a focus on improving the user experience, enhancing teacher tools and strengthening student engagement bodes well. These positives are likely to have boosted enrollments in the fiscal second quarter.
In addition to higher enrollments, LRN’s adult learning business is likely to have witnessed stronger student retention, backed by the online and hybrid education trend, non-traditional educational technologies, and low-cost certificate programs. The ongoing focus on cost reduction and operating efficiency is expected to have aided margins in the fiscal second quarter.
However, higher advertising and marketing expenditure, inflation and other macroeconomic woes are likely to have impacted its profit level to some extent.
For the quarter to be reported, Stride expects revenues of $490-$510 million and adjusted operating income of $80-$90 million. Also, it projects capital expenditure of $15-$18 million.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Stride 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. However, that’s not the case here.
Earnings ESP: LRN has an Earnings ESP of 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.
Stocks Poised to Consider
Here are some stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
MGM Resorts International (MGM - Free Report) has an Earnings ESP of +10.13% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of MGM Resorts have gained 9.8% in the past year. MGM’s earnings beat estimates in each of the trailing four quarters, the average surprise being 292.7%.
Live Nation Entertainment, Inc. (LYV - Free Report) has an Earnings ESP of +2.68% and a Zacks Rank #3.
Shares of Live Nation Entertainment have rallied 13.4% in the past three months. LYV’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 37.5%.
Hasbro, Inc. (HAS - Free Report) has an Earnings ESP of +4.48% and a Zacks Rank #3.
Shares of Hasbro have declined 15% in the past three months. HAS’ earnings beat estimates in two of the trailing four quarters and missed twice, the negative surprise being 22.4%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.