## Stride LRN Earnings Preview: What to Expect on October 22nd
Get ready for the upcoming quarterly earnings report from Stride LRN, the leading online education provider, set to release on Tuesday, October 22nd. As investors eagerly anticipate the announcement, here’s a comprehensive overview to guide you through the key takeaways and potential market implications.
Analysts’ Expectations and Key Metrics
Analysts anticipate Stride to report an earnings per share (EPS) of $0.22. While this figure is important, investors are particularly interested in the guidance provided for the next quarter. Guidance often plays a crucial role in determining stock price movements, as it reveals the company’s outlook and potential for future growth.
Historical Performance and Share Price Trends
Looking back at Stride’s past performance, we see a pattern of exceeding EPS estimates. In the previous earnings release, the company surpassed expectations by $0.15, resulting in a significant 9.26% increase in the share price during the following trading session. Here’s a breakdown of Stride’s recent performance and the corresponding price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q4 2024 | 1.27 | 1.42 | 9.0% |
| Q3 2024 | 1.43 | 1.60 | 9.0% |
| Q2 2024 | 1.31 | 1.54 | -2.0% |
| Q1 2024 | -0.35 | 0.11 | 18.0% |
Shares of Stride were trading at $64.52 as of October 18th, with a 45.71% increase over the past 52 weeks. This strong performance suggests a positive outlook for the company among long-term shareholders.
Analyst Sentiment and Peer Comparisons
To gain a broader understanding of Stride’s market position, it’s essential to consider analyst perspectives and compare its performance with industry peers. Stride currently holds an “Outperform” consensus rating from 7 analysts, with an average one-year price target of $88.71, indicating a potential 37.49% upside.
Let’s delve into how Stride stacks up against key competitors: Adtalem Glb Education, Laureate Education, and Strategic Education.
*
Adtalem Glb Education:
Analyst consensus indicates an “Outperform” trajectory, with an average one-year price target of $88.5, suggesting a potential 37.17% upside.*
Laureate Education:
Analysts hold a “Neutral” outlook, with an average one-year price target of $17.0, indicating a potential 73.65% downside.*
Strategic Education:
The consensus outlook leans towards “Outperform”, with an average one-year price target of $126.67, suggesting a potential 96.33% upside.Key Takeaway: Peer Analysis Summary
| Company | Consensus Rating | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Stride | Outperform | 10.48% | $188.21M | 5.51% |
| Adtalem Glb Education | Outperform | 12.41% | $227.37M | 3.67% |
| Laureate Education | Neutral | 8.05% | $180.25M | 13.84% |
| Strategic Education | Outperform | 8.55% | $149.03M | 1.80% |
Based on these metrics, Stride is positioned favorably compared to its peers in terms of consensus rating and revenue growth. However, its gross profit and return on equity are lower than some of its competitors. Overall, Stride’s performance sits in the middle ground among its peer group.
A Closer Look at Stride: Company Overview and Financial Highlights
Stride Inc., an American online educational company, offers alternative educational programs that cater to a wide range of students, from K-12 to adult learners. The company’s services include:
*
Managed Public School Programs:
Stride operates state-funded virtual charter schools across the United States.*
Institutional Programs:
These programs offer a diverse range of educational services to institutions, including colleges and universities.*
Private Pay Schools and Other:
This segment encompasses online programs for individuals seeking alternative education options.Financial Highlights:
*
Market Capitalization:
Stride’s market capitalization falls below industry averages, indicating a smaller size compared to its peers. This could be attributed to factors such as perceived growth potential or operational scale.*
Revenue Growth:
Stride boasts a remarkable revenue growth rate of 10.48% as of June 30, 2024, signifying a substantial increase in the company’s top-line earnings. However, it trails behind its industry peers in terms of revenue growth.*
Net Margin:
Stride stands out with an exceptional net margin that exceeds industry averages. This impressive 11.75% margin reflects strong profitability and efficient cost management.*
Return on Equity (ROE):
Stride’s exceptional ROE of 5.51% highlights its efficient use of equity capital and strong financial health.*
Return on Assets (ROA):
Similarly, Stride’s ROA of 3.29% showcases the company’s effective use of assets and overall financial strength.*
Debt Management:
Stride maintains a prudent financial strategy with a below-average debt-to-equity ratio of 0.45, indicating a balanced approach to debt management.Key Takeaways:
Stride LRN’s upcoming earnings report is a crucial event for investors. The company’s historical performance, analyst sentiment, and comparative metrics provide valuable insights into its current position and future prospects. With a strong track record, positive analyst sentiment, and a focus on innovation, Stride appears well-positioned for continued growth in the dynamic online education landscape. Keep a close eye on the upcoming earnings release to see how the company measures up to its expectations and the broader market outlook.