Stride Q2 revenue slightly beats estimates

Overview

• Education technology firm's fiscal Q2 revenue rose 7.5%, slightly beating analyst expectations

• Adjusted EPS for fiscal Q2 beat analyst expectations

• Company stabilized core platform issues, with enhancements ongoing

Outlook

• Stride forecasts full-year revenue between $2.480 bln and $2.555 bln

• Company expects third-quarter revenue between $615 mln and $645 mln

• Stride anticipates full-year capital expenditures between $70 mln and $80 mln

Result Drivers

• CAREER LEARNING GROWTH -Total Career Learning revenue increased by 24.5% due to a 29.3% rise in Middle-High School segment

• PLATFORM STABILIZATION - Core platform issues have stabilized, with enhancements ongoing

• INCREASED REVENUE PER ENROLLMENT - Revenue per enrollment rose 1.8%, driven by a 10% increase in Career Learning revenue per enrollment

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "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 $125.00, about 74.6% above its January 26 closing price of $71.60

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nGNXRwMV4

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