Stock Story -
Online study and academic help platform Chegg (NYSE:CHGG) will be reporting earnings tomorrow after market close. Here's what you need to know.
Chegg met analysts' revenue expectations last quarter, reporting revenues of $174.4 million, down 7.1% year on year. It was a weak quarter for the company, with a decline in its users. It reported 4.66 million users, down 8.1% year on year.
Is Chegg a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Chegg's revenue to decline 12.5% year on year to $160 million, a further deceleration from the 6.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 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. Chegg has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 2.3% on average.
Looking at Chegg's peers in the consumer subscription segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Roku (NASDAQ:ROKU) delivered year-on-year revenue growth of 14.3%, beating analysts' expectations by 3.2%, and Coursera (NYSE:COUR) reported revenues up 10.8%, topping estimates by 3.5%. Roku traded down 3.9% following the results while Coursera was up 45.1%.
Read the full analysis of Roku's and Coursera's results on StockStory.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 thanks to cooling inflation. 2024 has been a different story as mixed signals have led to market volatility, and while some of the consumer subscription stocks have fared somewhat better, they have not been spared, with share prices down 4.9% on average over the last month. Chegg is up 3.1% during the same time and is heading into earnings with an average analyst price target of $5.1 (compared to the current share price of $3).
![Chegg (CHGG) To Report Earnings Tomorrow: Here Is What To Expect](https://d68-invdn-com.investing.com/content/picbb23890346ac51ec7c8661e09a0d62ff.jpeg)