Stride jumps after Q1 results beat estimates

Stride

23/10/2024 13:45

** Shares of edutech firm Stride  LRN.N  rise 24.6% to
$80.35 premarket 
    ** Co reported Q1 revenue of $551.1 mln, beating estimates
compiled by LSEG of $504.3 mln 
    ** Q1 FY25 enrollments were 222.6K, up 18.5% compared to
187.9K enrollments last year; co says strong demand drove record
enrollment
    ** EPS of 94 cents was also above estimates of 22 cents -
LSEG 
    ** Co sees FY rev $2.225 bln to $2.300 bln and FY capital
expenditures between $60 mln to $65 mln
    ** Forecasts Q2 rev of $560 mln to $580 mln and Q2 capital
expenditures between $13 mln to $15 mln
    ** Morgan Stanley raises target price to $94 from $74,
maintains "equal-weight"
    ** Brokerage says Stride has achieved a fundamental step-up
in its organic revenue growth profile vs. history due to
increased virtual education awareness and strategic go-to-market
 improvements
    ** Avg rating of analysts covering stock is "buy"; median PT
is $90 - LSEG data
    ** As of last close, stock up 8.6% YTD

 (Reporting by Sukriti Gupta in Bengaluru)
 ((Sukriti.Gupta@thomsonreuters.com;))