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Stride (LRN) Q2 Earnings & Revenues Top Estimates, View Up
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Stride, Inc. (LRN - Free Report) reported impressive second-quarter fiscal 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Also, the top and the bottom line increased on a year-over-year basis.
The uptrend in the quarterly result was driven by increased enrollment growth in Career Learning and General Education programs. The company witnessed strength in both new enrollments and retention. The company also raised its fiscal 2024 full-year guidance.
Earnings & Sales in Detail
The company reported $1.54 earnings per share (EPS), beating the Zacks Consensus Estimate of EPS of $1.34 by 14.9% and increased 29.4% year over year.
The company’s reported revenues amounted to $504.9 million, beating the consensus mark of $503.8 million by 0.2% and increasing 10.1% from the year-ago figure of $458.4 million.
Total quarter-end enrollment increased 9% year over year to 196,500 students.
Segment Details
General Education revenues for the fiscal second quarter increased 14.2% to $313.9 million. Enrollment in General Education increased 9% year over year to 123,000 students.
Career Learning revenues for the reported quarter increased 4% to $191 million. Within the Career Learning umbrella, Middle - High School revenues increased 7.3% year over year, but Adult revenues declined 13.4% on a year-over-year basis.
Enrollment in Career Learning jumped 8.9% to 73,500 students from the year-ago period’s levels.
Revenue per enrollment in Career Learning dropped 1.6% from the year-ago period’s figures to $2,281. Revenue per enrollment in General Education increased 8.1% from the year-ago period’s levels to $2,465.
Costs & Margins
The company’s gross profit increased by 18.3% to $201.2 million in the reported quarter.
Adjusted operating income rose 24.4% to $94.9 million from $76.3 million reported a year ago. The operating margin increased to 18.8% in the reported quarter from 16.6% in the year-ago period.
Adjusted EBITDA grew 17.8% year over year to $118.3 million in the reported quarter.
Financials
As of Dec 31, 2023, the cash and cash equivalents totaled $354.4 million, compared with $410.8 million reported in fiscal 2023-end. The long-term debt increased to $413.9 million as of Dec 31, 2023, from $413 million as of Jun 30, 2023.
For the first six months of fiscal 2024, cash provided by operating activities totaled $38 million compared with $21.2 million in the year-ago period.
Capital expenditures declined 24.9% to $12.7 million for the fiscal second quarter compared with the last year’s reported value.
Fiscal 2024 Guidance Raised
Stride now expects revenues within the range of $1.99-$2.04 billion, up from the prior estimate of $1.96-$2.03 billion. Adjusted operating income is projected in the range of $265-$285 million, up from the prior estimate of $250-$275 million.
Capital expenditures are expected in the range of $60-$65 million compared with the prior estimate of $65-$75 million.
The effective tax rate is expected to be in the range of 25-27%.
The Zacks Consensus Estimate for VIRC’s 2024 sales and earnings per share (EPS) indicates a rise of 15.7% and 32.4%, respectively, from the year-ago period’s levels.
Electronic Arts Inc. (EA - Free Report) flaunts a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 13% on average. Shares of EA have increased 10.7% in the past year.
The Zacks Consensus Estimate for EA’s 2024 sales and EPS indicates a rise of 3.3% and 28.6%, respectively, from the year-ago period’s levels.
Skechers U.S.A., Inc. (SKX - Free Report) flaunts a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 50.3% on average. Shares of SKX have increased 29.5% in the past year.
The Zacks Consensus Estimate for SKX’s 2024 sales and EPS indicates a rise of 10% and 16.1%, respectively, from the year-ago period’s levels.
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Stride (LRN) Q2 Earnings & Revenues Top Estimates, View Up
Stride, Inc. (LRN - Free Report) reported impressive second-quarter fiscal 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Also, the top and the bottom line increased on a year-over-year basis.
The uptrend in the quarterly result was driven by increased enrollment growth in Career Learning and General Education programs. The company witnessed strength in both new enrollments and retention. The company also raised its fiscal 2024 full-year guidance.
Earnings & Sales in Detail
The company reported $1.54 earnings per share (EPS), beating the Zacks Consensus Estimate of EPS of $1.34 by 14.9% and increased 29.4% year over year.
Stride, Inc. Price, Consensus and EPS Surprise
Stride, Inc. price-consensus-eps-surprise-chart | Stride, Inc. Quote
The company’s reported revenues amounted to $504.9 million, beating the consensus mark of $503.8 million by 0.2% and increasing 10.1% from the year-ago figure of $458.4 million.
Total quarter-end enrollment increased 9% year over year to 196,500 students.
Segment Details
General Education revenues for the fiscal second quarter increased 14.2% to $313.9 million. Enrollment in General Education increased 9% year over year to 123,000 students.
Career Learning revenues for the reported quarter increased 4% to $191 million. Within the Career Learning umbrella, Middle - High School revenues increased 7.3% year over year, but Adult revenues declined 13.4% on a year-over-year basis.
Enrollment in Career Learning jumped 8.9% to 73,500 students from the year-ago period’s levels.
Revenue per enrollment in Career Learning dropped 1.6% from the year-ago period’s figures to $2,281. Revenue per enrollment in General Education increased 8.1% from the year-ago period’s levels to $2,465.
Costs & Margins
The company’s gross profit increased by 18.3% to $201.2 million in the reported quarter.
Adjusted operating income rose 24.4% to $94.9 million from $76.3 million reported a year ago. The operating margin increased to 18.8% in the reported quarter from 16.6% in the year-ago period.
Adjusted EBITDA grew 17.8% year over year to $118.3 million in the reported quarter.
Financials
As of Dec 31, 2023, the cash and cash equivalents totaled $354.4 million, compared with $410.8 million reported in fiscal 2023-end. The long-term debt increased to $413.9 million as of Dec 31, 2023, from $413 million as of Jun 30, 2023.
For the first six months of fiscal 2024, cash provided by operating activities totaled $38 million compared with $21.2 million in the year-ago period.
Capital expenditures declined 24.9% to $12.7 million for the fiscal second quarter compared with the last year’s reported value.
Fiscal 2024 Guidance Raised
Stride now expects revenues within the range of $1.99-$2.04 billion, up from the prior estimate of $1.96-$2.03 billion. Adjusted operating income is projected in the range of $265-$285 million, up from the prior estimate of $250-$275 million.
Capital expenditures are expected in the range of $60-$65 million compared with the prior estimate of $65-$75 million.
The effective tax rate is expected to be in the range of 25-27%.
Zacks Rank & Key Picks
Stride currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Zacks Consumer Discretionary sector:
Virco Mfg. Corporation (VIRC - Free Report) sports a Zacks Rank #1 (Strong Buy). VIRC has a trailing four-quarter earnings surprise of 188.6% on average. VIRC’s shares have surged 82% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VIRC’s 2024 sales and earnings per share (EPS) indicates a rise of 15.7% and 32.4%, respectively, from the year-ago period’s levels.
Electronic Arts Inc. (EA - Free Report) flaunts a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 13% on average. Shares of EA have increased 10.7% in the past year.
The Zacks Consensus Estimate for EA’s 2024 sales and EPS indicates a rise of 3.3% and 28.6%, respectively, from the year-ago period’s levels.
Skechers U.S.A., Inc. (SKX - Free Report) flaunts a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 50.3% on average. Shares of SKX have increased 29.5% in the past year.
The Zacks Consensus Estimate for SKX’s 2024 sales and EPS indicates a rise of 10% and 16.1%, respectively, from the year-ago period’s levels.