What's Next: Coursera's Earnings Preview

Coursera COUR is gearing up to announce its quarterly earnings on Thursday, 2024-10-24. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Coursera will report an earnings per share (EPS) of $0.02.

The market awaits Coursera's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Performance in Previous Earnings

During the last quarter, the company reported an EPS beat by $0.08, leading to a 44.67% increase in the share price on the subsequent day.

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

Coursera Share Price Analysis

Shares of Coursera were trading at $7.62 as of October 22. Over the last 52-week period, shares are down 56.43%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analyst Views on Coursera

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Coursera.

Coursera has received a total of 8 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $15.25, the consensus suggests a potential 100.13% upside.

Comparing Ratings with Competitors

In this analysis, we delve into the analyst ratings and average 1-year price targets of Udemy, Perdoceo Education and Afya, three key industry players, offering insights into their relative performance expectations and market positioning.

• For Udemy, analysts project an Buy trajectory, with an average 1-year price target of $12.25, indicating a potential 60.76% upside.
• The prevailing sentiment among analysts is an Outperform trajectory for Perdoceo Education, with an average 1-year price target of $30.0, implying a potential 293.7% upside.
• Afya received a Neutral consensus from analysts, with an average 1-year price target of $19.5, implying a potential 155.91% upside.

Peers Comparative Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Udemy, Perdoceo Education and Afya, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Coursera ranks first in revenue growth among its peers. It has the lowest gross profit margin. Coursera has the highest return on equity.

All You Need to Know About Coursera

Coursera Inc is an online learning platform that connects learners, educators, and institutions with the goal of providing educational content that is affordable, accessible, and relevant. It combines content, data, and technology into a single, unified platform that is customizable and extensible to both individual learners and institutions. The company operates through three reporting segments: Consumer, Enterprise, and Degrees. The majority of revenue is generated from the Consumer segment. The consumer segment targets individual learners seeking to obtain hands-on learning, gain valuable job skills, receive professional-level certifications, and otherwise increase their knowledge to start or advance their careers.

A Deep Dive into Coursera's Financials

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Coursera's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 10.82%. This indicates 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: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -13.49%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Coursera's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -3.85%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Coursera's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -2.52%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Coursera's debt-to-equity ratio is below the industry average at 0.0, reflecting a lower dependency on debt financing and a more conservative financial approach.

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

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