Stride's Earnings: A Preview

Stride LRN will release its quarterly earnings report on Tuesday, 2024-10-22. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Stride to report an earnings per share (EPS) of $0.22.

The announcement from Stride is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Historical Earnings Performance

In the previous earnings release, the company beat EPS by $0.15, leading to a 9.26% increase in the share price the following trading session.

Here's a look at Stride's past performance and the resulting price change:

Stride Share Price Analysis

Shares of Stride were trading at $64.52 as of October 18. Over the last 52-week period, shares are up 45.71%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on Stride

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Stride.

With 7 analyst ratings, Stride has a consensus rating of Outperform. The average one-year price target is $88.71, indicating a potential 37.49% upside.

Analyzing Analyst Ratings Among Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of Adtalem Glb Education, Laureate Education and Strategic Education, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Outperform trajectory for Adtalem Glb Education, with an average 1-year price target of $88.5, indicating a potential 37.17% upside.
• The consensus outlook from analysts is an Neutral trajectory for Laureate Education, with an average 1-year price target of $17.0, indicating a potential 73.65% downside.
• The consensus outlook from analysts is an Outperform trajectory for Strategic Education, with an average 1-year price target of $126.67, indicating a potential 96.33% upside.

Analysis Summary for Peers

The peer analysis summary outlines pivotal metrics for Adtalem Glb Education, Laureate Education and Strategic Education, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

In terms of consensus rating, Stride is performing better than its peers. Stride has the highest revenue growth among its peers. Stride's gross profit is lower than some peers. Stride's return on equity is lower compared to its peers. Overall, Stride is positioned in the middle compared to its peers.

Get to Know Stride Better

Stride Inc is an American online educational company. It offers alternative programs to traditional on-campus schooling. It also operates state-funded virtual charter schools around the United States. The educational programs for K-12 students are usually monitored by parents and provide virtual classroom environments where teachers meet with students online, by phone, or in-person. The company's contractual agreements with various school districts to offer its curriculum programs provide a majority of the company's revenue. The company lines of business are Managed Public School Programs, Institutional, and Private Pay Schools and Other.

Unraveling the Financial Story of Stride

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Stride's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 10.48%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Net Margin: Stride's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 11.75%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Stride's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.51%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Stride's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 3.29%, the company showcases efficient use of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.45, Stride adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Stride visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.