Online education Stride (NYSE: LRN) will be reporting earnings tomorrow afternoon. Here’s what to look for.
Stride beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $587.2 million, up 16.3% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS estimates. It reported 230,600 enrollments, up 19.4% year on year.
Is Stride a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Stride’s revenue to grow 13.7% year on year to $592.2 million, improving from the 10.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.15 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Stride has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.7% on average.
Looking at Stride’s peers in the media & entertainment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. IMAX delivered year-on-year revenue growth of 9.5%, beating analysts’ expectations by 2.9%, and Interpublic Group reported a revenue decline of 8.5%, in line with consensus estimates. IMAX traded down 3.2% following the results while Interpublic Group was up 2.7%.
Read our full analysis of IMAX’s results here and Interpublic Group’s results here.
Debates over possible tariffs and corporate tax adjustments have raised questions about economic stability in 2025. While some of the media & entertainment stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.1% on average over the last month. Stride is up 10.7% during the same time and is heading into earnings with an average analyst price target of $143.95 (compared to the current share price of $140).
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