Stride stock reversed for a slight decline Wednesday after the leading online educational firm topped expectations for Q3 results late Tuesday. LRN stock attempted to break out earlier in the day.
Stride reported earnings of $2.31 per share adjusted to beat the FactSet consensus for $2.21 per share. Revenue increased nearly 18% to $613.38 million, also ahead of views for $590.1 million.
Stride in its earnings presentation noted that it was the most profitable quarter in company history. Average enrollments for the quarter jumped 21.1% to 240,200 students.
General education enrollments increased 14% while career learning enrollments spiked 34%.
General education revenue increased 12%. Total career learning revenue increased 26.4%, offset by a 22.1% drop in adult revenue.
Stride also hiked its 2025 guidance based on its performance. The company now expects revenue up 17% for the year at the midpoint of its guidance to range from $2.37 billion to $2.385 billion. Stride previously expected sales of $2.32 billion to $2.355 billion.
How This Online Educator Avoided Post-Covid Letdown, Keeps Growing
The company expects adjusted operating income to increase 57% at the midpoint of its guidance, which ranges from $455 million to $465 million. The prior outlook called for adjusted operating income between $430 million and $450 million.
In terms of long-term targets, Stride expects to reach revenue of $2.7 billion to $3.3 billion for 2028, representing a compound annual growth rate of 10% at the midpoint. Earnings for 2028 are expected to range from $6.15 to $8.35 per share, representing a CAGR of 20% at the midpoint.
Stride Stock
LRN stock popped 3% early Wednesday to climb above a 145 buy point for a 10-week cup base at the open. However, shares reversed for a slight decline, closing at 142.25. The stock has rallied 37% so far this year.
Adtalem Global Education has advanced about 17% this year.
Mobile education and language instructor Duolingo is up about 20% this year.
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