Shares of Stride (LRN -0.50%) were up 19.4%, according to data provided by S&P Global Market Intelligence, after the online education platform company announced better-than-expected fiscal fiscal first-quarter results.
Indeed, the bulk of Stride's pop this week came on Wednesday, the first trading day after its quarterly update hit the wires.
Stride delivers a surprise profit
For its fiscal first-quarter 2024 ended Sept. 30, 2023, Stride's revenue grew 12.9% year over year to $480.2 million, well above Wall Street's consensus estimates of $450.8 million. On the bottom line, Stride achieved net income of $4.9 million, or $0.11 per share, swinging from a loss of $0.54 per share in the same year-ago period. Analysts, on average, were anticipating a quarterly loss of $0.30 per share.
Driving Stride's top-line strength was a 10.2% increase in general education revenue, to $299.3 million, as well as 17.8% growth in in career learning revenue to $180.8 million. Total enrollment in Stride's courses grew 8.1% year over year, to 187,900 students.
What's next for Stride stock?
Stride's forward guidance also left the market impressed; for the current second quarter of fiscal 2024, Stride anticipates revenue in the range of $490 million to $510 million -- well above the $484 million most analysts were modeling.
For the full fiscal-year 2024, Stride expects revenue of $1.96 billion to $2.03 billion, with even the lower end of that range again comfortably above Wall Street's consensus estimates for sales of $1.94 billion.
In the end, from its top-line beat to its surprise profit, strong enrollment growth, and encouraging outlook, there was little not to like about Stride's latest quarter. The leading education stock is rallying accordingly.
