Why Chegg Shares Are Falling

Chegg Inc CHGG shares are trading lower by 39.55% to $15.10 during Tuesday's pre-market session after the company reported first-quarter earnings results and issued second-quarter and FY22 sales guidance below analyst estimates.

Chegg reported quarterly earnings of 32 cents per share which beat the analyst consensus estimate of 24 cents. The company also reported quarterly sales of $202.20 million which beat the analyst consensus estimate of $201.28 million.

Chegg sees second-quarter sales as low as $188 million or as high as $192 million, versus the analyst consensus estimate of $209.29 million. Chegg see FY22 sales as low as $740M or as high as $770 million, versus the analyst consensus estimate of $843.54 million.

“We had a solid first quarter, and Chegg is executing well against our strategic objectives, despite continued industry headwinds,” said Dan Rosensweig, CEO & President of Chegg, Inc. “We expect these challenges to be temporary and when they subside, our operating model, balance sheet, and leading brand, put us in a strong position to accelerate our growth.”

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According to data from Benzinga Pro, Chegg has a 52-week high of $96.94 and a 52-week low of $23.23.