Stride, Inc. (LRN Quick QuoteLRN – Free Report) unveiled new long-term targets (through 2028) and updated its long-term strategy at an Investor Day. Shares of the company inched up 0.07% in the after-hours trading session on Nov 14.
Revenues are expected in the range of $2.7-$3.3 billion, adjusted operating income in the range of $415-$585 million and earnings per share of $6.15-$8.35.
The company’s long-term targets demonstrate sustained growth and leverage in the underlying business.
Stride’s Price Performance
Shares of Stride have risen by 44.7% in the past three months compared with the Zacks Schools industry’s growth of 17.3% and the S&P 500 index’s 2.1% increase.
In the fiscal first quarter, its revenues grew 12.9% year over year, driven by General Education and Career Learning enrollment strength. Adjusted EBITDA of $39.8 million was significantly up from $3 million a year ago.
Enrollment also grew 8.1% in the fiscal first quarter, backed by growth across both segments. General Education enrollment grew by 4.7% and Career Learning enrollment rose by 14.1%. Revenue per enrollment in General Education and Career Learning increased 7.4% and 5.7%, respectively, from the year-ago period.
For the fiscal second quarter, revenues are expected to range within $490-$510 million versus $458.4 million reported a year ago. Adjusted operating income is likely to range between $80 million and $90 million, up from $76.3 million reported in the previous year.