Online education Stride (NYSE: LRN) will be announcing earnings results this Tuesday afternoon. Here’s what to look for.
Stride beat analysts’ revenue expectations by 3.6% last quarter, reporting revenues of $613.4 million, up 17.8% year on year. It was a mixed quarter for the company, with full-year revenue guidance topping analysts’ expectations but a significant miss of analysts’ EPS estimates. It reported 240,200 enrollments, up 21.1% year on year.
Is Stride a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Stride’s revenue to grow 17.5% year on year to $627.5 million, improving from the 10.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.89 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Stride has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.7% on average.
Looking at Stride’s peers in the media & entertainment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. IMAX delivered year-on-year revenue growth of 3.1%, beating analysts’ expectations by 1%, and Interpublic Group reported a revenue decline of 6.6%, in line with consensus estimates. IMAX traded down 7.5% following the results while Interpublic Group was up 10.6%.
Read our full analysis of IMAX’s results here and Interpublic Group’s results here.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the media & entertainment stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.4% on average over the last month. Stride is down 6.7% during the same time and is heading into earnings with an average analyst price target of $161 (compared to the current share price of $129.00).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
