Stride (LRN) Delivers Strong Q3 Performance, Raises Outlook
Stride (LRN), a Virginia-based education company, reported impressive results for the third quarter of 2024 during Wednesday afternoon trading. The company exceeded consensus estimates, with revenue increasing by 10.7% year-over-year to reach $520.8 million. Adjusted EBITDA also experienced a significant increase of 16.0% to $120.5 million.
Stride’s enrollment numbers witnessed growth across both general education and career learning segments. General education enrollment rose by 8.7% to 124.6K, while career learning enrollment increased by 9.8% to 73.8K. The company also reported increases in revenue per enrollment, with the general education segment seeing a 7.5% increase to $2,507 and the career learning segment experiencing a 1.6% increase to $2,272.
On the financial front, Stride reported an earnings per share (EPS) of $1.60 for the quarter, surpassing the consensus estimate of $1.40 and the $1.30 reported a year ago. The company’s cash position at the end of the quarter stood at $570.7 million, compared to $545.5 million a year earlier.
Based on the positive results, Stride raised its outlook for fiscal year 2024. The company anticipates revenue to fall within the range of $2.025 billion to $2.040 billion, capital expenditures between $60 million and $65 million, and adjusted operating income between $280 million and $290 million.
Stride’s CEO expressed optimism about the company’s future prospects, citing strong enrollment trends and positive indicators. The CEO believes that Stride is well-positioned to continue its growth in the evolving education landscape by providing accessible, technology-driven, flexible, career-focused, and proven educational solutions.
In response to the positive earnings report, Stride’s shares experienced a 9.42% increase to $63.68 in later afternoon trading. The stock’s 52-week range has been between $35.61 and $69.70. Seeking Alpha’s Quant Rating on LRN has consistently indicated a Strong Buy since last August, when shares were trading more than 50% lower. The quant score for LRN remains in the top 10% of all consumer discretionary stocks.
