Online study and academic aid platform Chegg (NYSE:) will report earnings after market close tomorrow. This is what you can expect.
Chegg beat analysts’ revenue expectations by 1.1% last quarter, reporting revenue of $188 million, down 8.4% year over year. It was a weak quarter for the company, with a decline in users and slow revenue growth. The company reported 4.6 million users, down 8% year over year.
Is Chegg a Profitable Buy or Sell? Find out by reading the original article on StockStory, it’s free.
This quarter, analysts expect Chegg’s revenue to decline 7.2% year-over-year to $174.1 million, in line with the 7.2% decline recorded in the same quarter last year. Adjusted earnings are expected to be $0.25 per share.
The majority of analysts covering the company have reaffirmed their estimates from the last thirty days, suggesting they expect the company to continue its trajectory on the earnings front. Chegg has missed Wall Street revenue expectations just once over the past two years, beating revenue expectations by an average of 2.2%.
Looking at Chegg’s competitors in the consumer internet segment, some have already reported their first quarter results, giving us a hint of what to expect. Netflix (NASDAQ:) achieved year-over-year revenue growth of 14.8%, meeting analyst expectations. Roku (NASDAQ:) reported a 19% increase in sales, beating Wall Street consensus estimates by 3.7%. Netflix fell 3.4% after the results, while Roku also fell 10.3%.
Read the full analysis of Netflix and Roku’s results on StockStory.
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Growth stocks have been quite volatile in early 2024, and while some consumer internet stocks have done slightly better, they haven’t been spared, with the share price down 3.9% over the past month. Chegg is up 0.4% over the same period and is heading for a profit with an average analyst price target of $9.3 (compared to the share price of $7.25).
