Online education Stride (NYSE: LRN) will be reporting results this Tuesday after the bell. Here’s what you need to know.
Stride met analysts’ revenue expectations last quarter, reporting revenues of $629.9 million, up 2.7% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but full-year revenue guidance slightly missing analysts’ expectations.
Is Stride a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Stride’s revenue to decline 4% year on year, a reversal from the 22.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Stride has a history of exceeding Wall Street’s expectations.
Looking at Stride’s peers in the media & entertainment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. IMAX delivered year-on-year revenue growth of 12.2%, beating analysts’ expectations by 8.8%, and MediaAlpha reported revenues up 25.9%, topping estimates by 4.2%. IMAX traded up 10.4% following the results while MediaAlpha was down 1.9%.
Read our full analysis of IMAX’s results here and MediaAlpha’s results here.
There has been positive sentiment among investors in the media & entertainment segment, with share prices up 2.6% on average over the last month. Stride is down 11.1% during the same time and is heading into earnings with an average analyst price target of $109 (compared to the current share price of $79.30).
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