Stride Q1 revenue, adjusted EPS beat estimates on higher revenue per enrollment

Stride

Tue 21:26

Overview
US technology-based education firm's fiscal Q1 revenue rose 3% yr/yr, beating analyst expectations
Adjusted EPS for fiscal Q1 fell 10% yr/yr
Net income for fiscal Q1 declined 6% yr/yr

Outlook
Stride forecasts full-year 2027 revenue between $2.53 bln and $2.61 bln
Company expects full-year 2027 adjusted operating income of $500 mln to $530 mln
Stride projects full-year 2027 effective tax rate of 24% to 26%

Result Drivers
CAREER LEARNING GROWTH - Higher Career Learning Middle-High School revenue and increased enrollments drove segment growth
REVENUE PER ENROLLMENT - Company said higher revenue per enrollment contributed to overall revenue growth
SEGMENT DECLINES - Lower General Education and Adult Career Learning revenue offset some gains

Company press release: ID:nGNX10Fv5r

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$639.40 mln
$615.63 mln (3 Analysts)
Q1 Adjusted EPS
Beat
$1.37
$1.005 (2 Analysts)
Q1 EPS
 
$1.45
 
Q1 Net Income
 
$64.90 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 $124.60, about 53.8% above its October 19 closing price of $80.99
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

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Oct 20 - Pegasystems Q3 revenue, adjusted EPS miss estimates as contract growth slows
Oct 19 - Accounting firm CBIZ Q3 revenue, adj EPS miss analyst estimates

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.)