Zacks: Brokerages Anticipate 2U Inc (TWOU) Will Announce Earnings of $0.20 Per Share

Equities analysts forecast that 2U Inc (NASDAQ:TWOU) will post earnings of $0.20 per share for the current fiscal quarter, Zacks Investment Research reports. Six analysts have provided estimates for 2U’s earnings, with the highest EPS estimate coming in at $0.22 and the lowest estimate coming in at $0.13. 2U posted earnings per share of $0.14 during the same quarter last year, which indicates a positive year over year growth rate of 42.9%. The firm is expected to announce its next earnings results on Monday, February 25th.

On average, analysts expect that 2U will report full-year earnings of ($0.10) per share for the current year, with EPS estimates ranging from ($0.10) to ($0.09). For the next financial year, analysts anticipate that the firm will post earnings of ($0.04) per share, with EPS estimates ranging from ($0.12) to $0.02. Zacks’ earnings per share calculations are a mean average based on a survey of research analysts that follow 2U.

2U (NASDAQ:TWOU) last posted its quarterly earnings results on Monday, November 5th. The software maker reported ($0.01) EPS for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.02) by $0.01. The business had revenue of $106.96 million during the quarter, compared to the consensus estimate of $106.49 million. 2U had a negative net margin of 13.69% and a negative return on equity of 9.91%. The company’s quarterly revenue was up 52.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.15) earnings per share.

A number of brokerages recently commented on TWOU. DA Davidson began coverage on shares of 2U in a research note on Wednesday, August 29th. They set a “buy” rating and a $98.00 target price for the company. Piper Jaffray Companies began coverage on shares of 2U in a research note on Thursday, September 6th. They set a “neutral” rating and a $94.00 target price for the company. BidaskClub downgraded shares of 2U from a “buy” rating to a “hold” rating in a research note on Saturday, September 15th. ValuEngine upgraded shares of 2U from a “buy” rating to a “strong-buy” rating in a research note on Thursday, August 2nd. Finally, Barrington Research reiterated a “buy” rating and set a $100.00 target price on shares of 2U in a research note on Friday, August 3rd. Four investment analysts have rated the stock with a hold rating and eleven have given a buy rating to the stock. The stock has an average rating of “Buy” and an average target price of $80.08.

In other 2U news, COO Mark Chernis sold 10,000 shares of the company’s stock in a transaction on Wednesday, September 12th. The shares were sold at an average price of $84.04, for a total value of $840,400.00. Following the completion of the transaction, the chief operating officer now owns 43,602 shares in the company, valued at $3,664,312.08. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Christopher J. Paucek sold 75,000 shares of the company’s stock in a transaction on Monday, September 10th. The shares were sold at an average price of $84.42, for a total transaction of $6,331,500.00. Following the completion of the transaction, the chief executive officer now owns 605,191 shares of the company’s stock, valued at approximately $51,090,224.22. The disclosure for this sale can be found here. Corporate insiders own 5.00% of the company’s stock.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Los Angeles Capital Management & Equity Research Inc. boosted its stake in 2U by 4,904.4% in the third quarter. Los Angeles Capital Management & Equity Research Inc. now owns 149,130 shares of the software maker’s stock valued at $11,213,000 after acquiring an additional 146,150 shares in the last quarter. Wells Fargo & Company MN boosted its stake in 2U by 91.3% in the third quarter. Wells Fargo & Company MN now owns 1,107,213 shares of the software maker’s stock valued at $83,252,000 after acquiring an additional 528,454 shares in the last quarter. Frontier Capital Management Co. LLC boosted its stake in 2U by 109.5% in the third quarter. Frontier Capital Management Co. LLC now owns 684,454 shares of the software maker’s stock valued at $51,464,000 after acquiring an additional 357,677 shares in the last quarter. Public Employees Retirement Association of Colorado boosted its stake in 2U by 30.5% in the third quarter. Public Employees Retirement Association of Colorado now owns 8,961 shares of the software maker’s stock valued at $674,000 after acquiring an additional 2,094 shares in the last quarter. Finally, NN Investment Partners Holdings N.V. boosted its stake in 2U by 4.0% in the third quarter. NN Investment Partners Holdings N.V. now owns 155,000 shares of the software maker’s stock valued at $11,654,000 after acquiring an additional 6,000 shares in the last quarter.

Shares of TWOU stock traded down $9.86 on Tuesday, reaching $53.42. 5,648,163 shares of the stock were exchanged, compared to its average volume of 614,260. The company has a current ratio of 5.71, a quick ratio of 5.71 and a debt-to-equity ratio of 0.04. The company has a market cap of $3.66 billion, a P/E ratio of -98.93 and a beta of 0.34. 2U has a twelve month low of $49.72 and a twelve month high of $98.58.

About 2U

2U, Inc operates as an education technology company in the United States, Hong Kong, South Africa, and the United Kingdom. The company operates through two segments, Graduate Program Segment and Short Course Segment. It offers front-end technology and services, including online learning platform, student and faculty and immersion support, accessibility, admissions application advising, in-program student field placements, and faculty recruiting.

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