Udemy's Earnings Outlook

Udemy UDMY will release its quarterly earnings report on Tuesday, 2024-10-29. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Udemy to report an earnings per share (EPS) of $0.01.

Investors in Udemy are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Performance in Previous Earnings

In the previous earnings release, the company missed EPS by $0.03, leading to a 18.61% drop in the share price the following trading session.

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

Market Performance of Udemy's Stock

Shares of Udemy were trading at $7.99 as of October 25. Over the last 52-week period, shares are down 8.12%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Insights on Udemy

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

With 6 analyst ratings, Udemy has a consensus rating of Buy. The average one-year price target is $12.25, indicating a potential 53.32% upside.

Peer Ratings Comparison

The analysis below examines the analyst ratings and average 1-year price targets of Coursera, Perdoceo Education and Afya, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• As per analysts' assessments, Coursera is favoring an Outperform trajectory, with an average 1-year price target of $11.22, suggesting a potential 40.43% upside.
• For Perdoceo Education, analysts project an Outperform trajectory, with an average 1-year price target of $30.0, indicating a potential 275.47% upside.
• The consensus outlook from analysts is an Neutral trajectory for Afya, with an average 1-year price target of $19.5, indicating a potential 144.06% upside.

Peer Metrics Summary

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

Key Takeaway:

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

About Udemy

Udemy Inc operates a marketplace platform at the center of a vibrant knowledge network. The Company operates under two operating and reportable segments Consumer and Enterprise, out of which the Enterprise segment derives the maximum revenue. Geographically, the company derives maximum revenue from North America. The company leverages data, technology, and insights for effective learning experiences. It helps individuals and organizations to possess effective skill acquisition and development with flexibility.

Financial Insights: Udemy

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Udemy showcased positive performance, achieving a revenue growth rate of 9.04% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -16.37%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Udemy's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -11.6%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Udemy's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -4.61%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 0.05, Udemy adopts a prudent financial strategy, indicating a balanced approach to debt management.

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

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