Zacks: Brokerages Anticipate Chegg Inc (CHGG) Will Post Quarterly Sales of $91.74 Million

Wall Street brokerages expect Chegg Inc (NYSE:CHGG) to post $91.74 million in sales for the current fiscal quarter, Zacks reports. Five analysts have issued estimates for Chegg’s earnings. The highest sales estimate is $92.12 million and the lowest is $91.26 million. Chegg posted sales of $73.51 million during the same quarter last year, which would indicate a positive year-over-year growth rate of 24.8%. The business is scheduled to issue its next quarterly earnings report on Monday, February 11th.

On average, analysts expect that Chegg will report full-year sales of $317.06 million for the current year, with estimates ranging from $316.63 million to $317.53 million. For the next year, analysts expect that the business will report sales of $388.50 million, with estimates ranging from $388.00 million to $389.19 million. Zacks Investment Research’s sales calculations are an average based on a survey of analysts that follow Chegg.

Chegg (NYSE:CHGG) last released its quarterly earnings results on Monday, October 29th. The technology company reported $0.07 EPS for the quarter, topping analysts’ consensus estimates of $0.03 by $0.04. Chegg had a negative net margin of 5.55% and a positive return on equity of 1.75%. The business had revenue of $74.20 million for the quarter, compared to analyst estimates of $69.02 million. During the same period last year, the firm earned $0.01 earnings per share. Chegg’s revenue for the quarter was up 18.5% compared to the same quarter last year.

A number of research firms recently commented on CHGG. Morgan Stanley raised their price target on shares of Chegg from $24.00 to $28.00 and gave the stock a “hold” rating in a research report on Wednesday, August 1st. Zacks Investment Research raised shares of Chegg from a “hold” rating to a “buy” rating and set a $31.00 price target on the stock in a research report on Thursday. Craig Hallum raised shares of Chegg from a “hold” rating to a “buy” rating in a research report on Tuesday, October 2nd. Barrington Research reaffirmed a “buy” rating and set a $32.00 price target on shares of Chegg in a research report on Friday, October 5th. Finally, Jefferies Financial Group lowered their price target on shares of Chegg from $30.00 to $28.00 and set a “hold” rating on the stock in a research report on Tuesday, October 30th. Five research analysts have rated the stock with a hold rating, seven have assigned a buy rating and two have issued a strong buy rating to the stock. Chegg presently has an average rating of “Buy” and an average price target of $26.80.

NYSE:CHGG traded down $0.48 during mid-day trading on Wednesday, reaching $27.09. 1,299,582 shares of the company’s stock were exchanged, compared to its average volume of 1,624,530. Chegg has a one year low of $13.80 and a one year high of $32.82. The firm has a market cap of $3.20 billion, a price-to-earnings ratio of -301.00, a P/E/G ratio of 10.78 and a beta of 1.43. The company has a debt-to-equity ratio of 0.72, a quick ratio of 6.56 and a current ratio of 6.56.

In other Chegg news, General Counsel Dave Jr. Borders sold 15,000 shares of the firm’s stock in a transaction dated Monday, October 1st. The shares were sold at an average price of $28.31, for a total value of $424,650.00. Following the transaction, the general counsel now directly owns 467,584 shares of the company’s stock, valued at approximately $13,237,303.04. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Daniel Rosensweig sold 150,000 shares of the firm’s stock in a transaction dated Wednesday, September 12th. The shares were sold at an average price of $31.07, for a total transaction of $4,660,500.00. Following the completion of the transaction, the chief executive officer now directly owns 2,435,450 shares in the company, valued at $75,669,431.50. The disclosure for this sale can be found here. Over the last three months, insiders sold 565,000 shares of company stock worth $16,156,650. Insiders own 10.80% of the company’s stock.

Hedge funds have recently added to or reduced their stakes in the business. Riverbridge Partners LLC bought a new stake in shares of Chegg during the 3rd quarter valued at approximately $32,262,000. FMR LLC grew its holdings in shares of Chegg by 19.3% during the 2nd quarter. FMR LLC now owns 6,321,121 shares of the technology company’s stock valued at $175,664,000 after purchasing an additional 1,022,400 shares during the last quarter. BlackRock Inc. grew its holdings in shares of Chegg by 17.3% during the 2nd quarter. BlackRock Inc. now owns 6,648,320 shares of the technology company’s stock valued at $184,758,000 after purchasing an additional 978,343 shares during the last quarter. Public Employees Retirement Association of Colorado grew its holdings in shares of Chegg by 13,729.5% during the 3rd quarter. Public Employees Retirement Association of Colorado now owns 645,006 shares of the technology company’s stock valued at $18,338,000 after purchasing an additional 640,342 shares during the last quarter. Finally, Bank of America Corp DE grew its holdings in shares of Chegg by 414.8% during the 2nd quarter. Bank of America Corp DE now owns 782,849 shares of the technology company’s stock valued at $21,755,000 after purchasing an additional 630,791 shares during the last quarter.

Chegg Company Profile

Chegg, Inc operates direct-to-student learning platform that supports students on their journey from high school to college and into their career with tools designed to help them pass their test, pass their class, and save money on required materials. The company offers Chegg Services, which include digital products and services; and required materials that comprise its print textbooks and eTextbooks.

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