Online study and academic help platform Chegg (NYSE: CHGG) will be announcing earnings results this Tuesday morning. Here’s what to expect.
Chegg beat analysts’ revenue expectations last quarter, reporting revenues of $51.85 million, down 50.7% year on year. It was a slower quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and EBITDA guidance for next quarter missing analysts’ expectations significantly.
Is Chegg a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Chegg’s revenue to decline 44% year on year, in line with the 43.1% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Chegg has a history of exceeding Wall Street’s expectations.
Looking at Chegg’s peers in the consumer internet segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Coursera delivered year-on-year revenue growth of 94%, beating analysts’ expectations by 2.2%, and Netflix reported revenues up 11.8%, in line with consensus estimates. Coursera traded down 24.9% following the results while Netflix was also down 5.3%.
Read our full analysis of Coursera’s results here and Netflix’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 2.1% on average over the last month. Chegg is down 1.9% during the same time.
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
