2U, Inc. (NASDAQ:TWOU) Expected to Post Quarterly Sales of $230.58 Million

Equities research analysts expect that 2U, Inc. (NASDAQ:TWOU) will announce sales of $230.58 million for the current fiscal quarter, according to Zacks. Five analysts have provided estimates for 2U’s earnings, with the lowest sales estimate coming in at $222.70 million and the highest estimate coming in at $235.00 million. 2U posted sales of $201.07 million during the same quarter last year, which suggests a positive year-over-year growth rate of 14.7%. The company is expected to announce its next quarterly earnings report on Tuesday, October 26th.

According to Zacks, analysts expect that 2U will report full year sales of $943.66 million for the current financial year, with estimates ranging from $939.90 million to $946.50 million. For the next year, analysts anticipate that the business will post sales of $1.10 billion, with estimates ranging from $1.08 billion to $1.11 billion. Zacks Investment Research’s sales calculations are an average based on a survey of sell-side analysts that cover 2U.

2U (NASDAQ:TWOU) last announced its quarterly earnings data on Wednesday, July 28th. The software maker reported ($0.09) EPS for the quarter, topping analysts’ consensus estimates of ($0.16) by $0.07. 2U had a negative return on equity of 13.52% and a negative net margin of 17.79%. The business had revenue of $237.21 million during the quarter, compared to analysts’ expectations of $233.32 million.

A number of research firms have issued reports on TWOU. Morgan Stanley boosted their target price on 2U from $53.00 to $55.00 and gave the company an “equal weight” rating in a research note on Friday, July 30th. Barrington Research reissued a “buy” rating and issued a $65.00 target price on shares of 2U in a research note on Friday, July 30th. Macquarie raised 2U from a “neutral” rating to an “outperform” rating in a research note on Monday, July 12th. Finally, Jefferies Financial Group cut their price target on 2U from $60.00 to $50.00 and set a “buy” rating on the stock in a report on Tuesday, May 18th. They noted that the move was a valuation call. Four analysts have rated the stock with a hold rating and five have given a buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Buy” and an average price target of $55.86.

In related news, COO Mark Chernis sold 6,888 shares of the stock in a transaction that occurred on Monday, July 26th. The stock was sold at an average price of $45.71, for a total transaction of $314,850.48. Following the sale, the chief operating officer now owns 289,975 shares of the company’s stock, valued at $13,254,757.25. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Paul S. Lalljie sold 50,625 shares of the stock in a transaction that occurred on Wednesday, June 30th. The stock was sold at an average price of $41.91, for a total value of $2,121,693.75. The disclosure for this sale can be found here. Insiders sold 84,763 shares of company stock worth $3,444,249 in the last 90 days. Corporate insiders own 4.50% of the company’s stock.

Hedge funds have recently modified their holdings of the business. Cullen Frost Bankers Inc. lifted its stake in shares of 2U by 109.3% in the 1st quarter. Cullen Frost Bankers Inc. now owns 812 shares of the software maker’s stock valued at $31,000 after acquiring an additional 424 shares during the last quarter. Banque Cantonale Vaudoise bought a new position in shares of 2U in the 1st quarter valued at $34,000. Tompkins Financial Corp lifted its stake in shares of 2U by 133.4% in the 1st quarter. Tompkins Financial Corp now owns 887 shares of the software maker’s stock valued at $34,000 after acquiring an additional 507 shares during the last quarter. Rockefeller Capital Management L.P. lifted its stake in shares of 2U by 42.2% in the 2nd quarter. Rockefeller Capital Management L.P. now owns 893 shares of the software maker’s stock valued at $36,000 after acquiring an additional 265 shares during the last quarter. Finally, Federated Hermes Inc. bought a new position in shares of 2U in the 2nd quarter valued at $36,000.

Shares of 2U stock opened at $33.66 on Wednesday. The company has a quick ratio of 3.89, a current ratio of 3.89 and a debt-to-equity ratio of 0.81. 2U has a 12 month low of $28.45 and a 12 month high of $59.74. The business has a fifty day simple moving average of $39.94 and a 200 day simple moving average of $39.01. The stock has a market cap of $2.51 billion, a PE ratio of -15.30 and a beta of 0.94.

2U Company Profile

2U, Inc engages in the provision of education technology for nonprofit colleges and universities. It operates through the following segments: Degree Program and Alternative Credential. The Degree Program segment provides technology and services to nonprofit colleges and universities to enable the online delivery of degree programs.

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