Chegg (CHGG) Expected to Post Earnings of $0.08 Per Share

Wall Street analysts forecast that Chegg (NYSE:CHGG) will post earnings of $0.08 per share for the current quarter, according to Zacks. Five analysts have issued estimates for Chegg’s earnings. The highest EPS estimate is $0.12 and the lowest is $0.07. Chegg posted earnings per share of $0.06 in the same quarter last year, which would indicate a positive year over year growth rate of 33.3%. The business is expected to report its next quarterly earnings report on Tuesday, July 24th.

On average, analysts expect that Chegg will report full year earnings of $0.40 per share for the current financial year, with EPS estimates ranging from $0.33 to $0.47. For the next financial year, analysts expect that the company will report earnings of $0.54 per share, with EPS estimates ranging from $0.40 to $0.71. Zacks Investment Research’s EPS averages are a mean average based on a survey of sell-side research analysts that follow Chegg.

Chegg (NYSE:CHGG) last announced its quarterly earnings data on Thursday, April 26th. The technology company reported $0.10 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.09 by $0.01. The business had revenue of $76.95 million during the quarter, compared to the consensus estimate of $74.15 million. Chegg had a negative net margin of 6.12% and a negative return on equity of 0.95%. The firm’s quarterly revenue was up 22.9% compared to the same quarter last year. During the same quarter last year, the firm earned $0.06 earnings per share.

CHGG has been the topic of several research reports. BMO Capital Markets reissued a “buy” rating and set a $20.00 price objective on shares of Chegg in a report on Wednesday, January 17th. ValuEngine upgraded shares of Chegg from a “hold” rating to a “buy” rating in a research note on Monday, April 2nd. Morgan Stanley started coverage on shares of Chegg in a research report on Monday, February 26th. They set an “equal weight” rating and a $23.00 target price for the company. Lake Street Capital restated a “hold” rating and set a $20.00 target price (up from $16.00) on shares of Chegg in a research report on Friday, April 27th. Finally, Craig Hallum downgraded shares of Chegg from a “buy” rating to a “hold” rating in a research report on Friday, April 27th. They noted that the move was a valuation call. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating, five have given a buy rating and one has given a strong buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average price target of $21.00.

In related news, insider Esther Lem sold 10,000 shares of the firm’s stock in a transaction dated Tuesday, February 13th. The shares were sold at an average price of $17.50, for a total value of $175,000.00. Following the completion of the sale, the insider now owns 455,120 shares in the company, valued at $7,964,600. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Andrew J. Brown sold 103,800 shares of the firm’s stock in a transaction dated Tuesday, May 8th. The shares were sold at an average price of $25.01, for a total transaction of $2,596,038.00. Following the transaction, the chief financial officer now owns 702,897 shares of the company’s stock, valued at $17,579,453.97. The disclosure for this sale can be found here. Insiders sold a total of 1,411,747 shares of company stock valued at $30,690,393 in the last 90 days. Company insiders own 10.80% of the company’s stock.

Several hedge funds and other institutional investors have recently modified their holdings of CHGG. SG Americas Securities LLC purchased a new stake in shares of Chegg during the first quarter worth about $137,000. Xact Kapitalforvaltning AB acquired a new position in Chegg during the fourth quarter valued at approximately $169,000. Suntrust Banks Inc. acquired a new position in Chegg during the fourth quarter valued at approximately $182,000. JPMorgan Chase & Co. lifted its position in Chegg by 53.8% during the third quarter. JPMorgan Chase & Co. now owns 16,302 shares of the technology company’s stock valued at $240,000 after buying an additional 5,702 shares in the last quarter. Finally, Millennium Management LLC acquired a new position in shares of Chegg during the fourth quarter worth $388,000.

Shares of Chegg opened at $25.28 on Wednesday, MarketBeat.com reports. The company has a market cap of $2.77 billion, a PE ratio of -280.89, a P/E/G ratio of 17.03 and a beta of 1.42. Chegg has a one year low of $24.91 and a one year high of $25.39.

Chegg declared that its Board of Directors has initiated a stock buyback program on Wednesday, March 28th that allows the company to buyback $20.00 million in outstanding shares. This buyback authorization allows the technology company to repurchase up to 0.9% of its shares through a private placement purchase. Shares buyback programs are generally a sign that the company’s board believes its stock is undervalued.

About Chegg

Chegg, Inc operates direct-to-student learning platform that supports students on their journey from high school to college and into their career with tools designed to help them pass their test, pass their class, and save money on required materials. The company offers Chegg Services, which include digital products and services; and required materials that comprise its print textbooks and eTextbooks.

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