Chegg Inc (NYSE: CHGG) shares are trading significantly higher Wednesday after the company reported better-than-expected financial results and issued full-year guidance above analyst estimates.
Q3 Results: Chegg said third-quarter revenue decreased 4% year-over-year to $164.7 million, which beat average analyst estimates of $158.34 million, according to Benzinga Pro. The company reported quarterly earnings of 21 cents per share, which beat average estimates of 14 cents per share.
"Our results reflect excellent execution and show the inherent profitability of our model while we continue to invest for future growth," said Dan Rosensweig, president, and CEO of Chegg.
Outlook: Chegg expects fourth-quarter revenue to be between $200 million and $203 million versus average analyst estimates of $204.82 million. The company expects full-year revenue to be between $762 million and $765 million versus average estimates of $760.67 million.
Analyst Assessment:
- Piper Sandler analyst Arvind Ramnani maintained Chegg with a Neutral rating and raised the price target from $23 to $24.
- Morgan Stanley (NYSE:MS) analyst Josh Baer maintained Chegg with an Equal-Weight rating and raised the price target from $22 to $24.
- Barrington Research analyst Alexander Paris maintained Chegg with an Outperform rating and raised the price target from $25 to $30.
- Northland Capital Markets analyst Mike Grondahl maintained Chegg with an Outperform rating and raised the price target from $30 to $32.
CHGG Price Action: Chegg has a 52-week high of $37.64 and a 52-week low of $21.07.
The stock was up 24.1% at $26.20 at time of publication.
Photo: günter from Pixabay.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.