Stride Q1 revenue, adjusted EPS beat estimates on higher revenue per enrollment

Overview

• US technology-based education firm's fiscal Q1 revenue rose 3% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q1 fell 10% yr/yr

• Net income for fiscal Q1 declined 6% yr/yr

Outlook

• Stride forecasts full-year 2027 revenue between $2.53 bln and $2.61 bln

• Company expects full-year 2027 adjusted operating income of $500 mln to $530 mln

• Stride projects full-year 2027 effective tax rate of 24% to 26%

Result Drivers

• CAREER LEARNING GROWTH - Higher Career Learning Middle-High School revenue and increased enrollments drove segment growth

• REVENUE PER ENROLLMENT - Company said higher revenue per enrollment contributed to overall revenue growth

• SEGMENT DECLINES - Lower General Education and Adult Career Learning revenue offset some gains

Company press release: ID:nGNX10Fv5r

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the miscellaneous educational service providers peer group is "buy"

• Wall Street's median 12-month price target for Stride Inc is $124.60, about 53.8% above its October 19 closing price of $80.99

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)