Chegg stock flies higher as earnings, revenue decline but top expectations

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Shares of Chegg Inc. CHGG, -2.35% were moving nearly 10% higher in after-hours action Thursday after the study-tools company exceeded expectations with its second-quarter financials. The company posted net income of $7.5 million, or 6 cents a share, compared with $32.8 million, or 20 cents a share, a year before. After adjustments, Chegg earned 37 cents cents a share, down from 43 cents a share a year prior but above the FactSet consensus, which was for 33 cents a share. Revenue slipped to $194.7 million from $198.5 million, while analysts tracked by FactSet were looking for $189.6 million. “Our team is doing an excellent job of executing on the current opportunities in front of us, and with the impact of constant upgrades to our user experience we are seeing continued strong conversion rates,” Chief Executive Dan Rosensweig said in a release. “We are executing very well on our services strategy, resulting in record high take-rates for our Chegg Study Pack.” For the third quarter, Chegg expects revenue of $156 million to $160 million, whereas analysts were anticipating $162.7 million. The company now expects $745 million to $770 million in full-year net revenue. Analysts tracked by FactSet were modeling $755 million. The company’s prior full-year revenue outlook called for $740 million to $770 million. Chegg shares have gained 6% over the past three months as the S&P 500 SPX, -0.08% has dropped 0.6%.

This article was originally published by Marketwatch.com. Read the original article here.

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