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Stride Q4 revenue, adjusted EPS beats estimates

Stride Q4 revenue, adjusted EPS beats estimates


Overview

  • US education technology firm's Q4 revenue fell 2.7% yr/yr but beat analyst expectations

  • Q4 adjusted EPS declined yr/yr but beat analyst expectations

  • Company repurchased about $100 mln in stock during the quarter


Outlook

  • Stride did not provide specific guidance for the current quarter or full year


Result Drivers

  • GENERAL EDUCATION WEAKNESS - Q4 General Education revenue fell 9.7% yr/yr, contributing to overall revenue decline

  • CAREER LEARNING GROWTH - Q4 Career Learning revenue rose 8.0% yr/yr, led by 11.1% growth in Middle-High School segment

  • ADULT LEARNING DECLINE - Q4 Adult Learning revenue fell 31.1% yr/yr, offsetting gains in other segments


Company press release: ID:nGNX9GJBY1


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Beat

$636.1 mln

$626.52 mln (4 Analysts)

Q4 Adjusted EPS

Beat

$2.12

$1.88 (4 Analysts)

Q4 EPS

$1.75

Q4 Net Income

$81.40 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the miscellaneous educational service providers peer group is "buy"

  • Wall Street's median 12-month price target for Stride Inc is $123.75, about 54.5% above its August 3 closing price of $80.10

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 13 three months ago


Reuters Recommended Reads

  • Aug 3 - HealthStream Q2 revenue beats estimates, helped by acquisitions

  • Aug 4 - Alight Q2 revenue falls on lower commercial activity, but beats analyst expectations

  • Aug 4 - TrueBlue Q2 adjusted EPS beats estimates as on-demand business returns to growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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