Shares of Stride (NYSE:LRN) surged today, which can be attributed to a better-than-expected earnings report. The online learning company posted $1.30 in adjusted EPS for the fiscal third quarter, outpacing the Street consensus by $1.07, while its $470.28 million revenue also surpassed estimates.
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Encouraged by the robust Q3 performance, management raised full-year revenue projections to a range of $1.805 billion to $1.825 billion, up from the previously forecasted $1.775 billion to $1.815 billion. The company also increased its adjusted operating income guidance to a range of $193 million to $200 million from the earlier $180 million to $200 million. The company’s performance has also earned positive reactions from analysts.
Indeed, William Blair analyst Stephen Sheldon applauded Stride’s results, noting that the company ended the quarter with over 179,000 enrollments and experienced positive application volume trends. He also pointed out that the new Learning Hub’s launch offers a near-term catalyst for the stock. As a result, Sheldon maintained an Outperform rating on the stock. In addition, Morgan Stanley’s Greg Parrish also increased estimates, raising his price target to $50 from $46, but maintained a Hold-equivalent rating, citing potential risks of post-pandemic enrollment declines.
A look at the past five trading days for LRN stock highlights the level of impact today’s news had on it. Indeed, shares jumped over 13% at the time of writing.
