2U, Inc. (NASDAQ:TWOU) Expected to Announce Earnings of -$0.17 Per Share


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Equities analysts expect that 2U, Inc. (NASDAQ:TWOU) will post earnings of ($0.20) per share for the current quarter, Zacks Investment Research reports. Six analysts have made estimates for 2U’s earnings, with the highest EPS estimate coming in at ($0.11) and the lowest estimate coming in at ($0.24). 2U reported earnings per share of ($0.34) in the same quarter last year, which would suggest a positive year over year growth rate of 41.2%. The firm is scheduled to issue its next earnings report on Thursday, July 29th.

According to Zacks, analysts expect that 2U will report full-year earnings of ($0.39) per share for the current fiscal year, with EPS estimates ranging from ($0.65) to ($0.29). For the next year, analysts anticipate that the company will report earnings of ($0.05) per share, with EPS estimates ranging from ($0.63) to $0.21. Zacks’ earnings per share calculations are a mean average based on a survey of sell-side analysts that follow 2U.

2U (NASDAQ:TWOU) last posted its earnings results on Tuesday, April 27th. The software maker reported ($0.12) EPS for the quarter, beating the Zacks’ consensus estimate of ($0.23) by $0.11. The company had revenue of $232.47 million for the quarter, compared to analysts’ expectations of $219.49 million. 2U had a negative net margin of 30.92% and a negative return on equity of 20.04%. 2U’s revenue for the quarter was up 32.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.33) earnings per share.

TWOU has been the topic of a number of recent research reports. Needham & Company LLC upped their target price on shares of 2U from $50.00 to $61.00 and gave the stock a “buy” rating in a research note on Friday, February 12th. Piper Sandler increased their price target on 2U from $49.00 to $60.00 and gave the stock an “overweight” rating in a report on Friday, February 12th. DA Davidson raised their price target on 2U from $34.00 to $55.00 and gave the company a “neutral” rating in a research report on Friday, February 12th. They noted that the move was a valuation call. Zacks Investment Research cut 2U from a “buy” rating to a “hold” rating in a report on Thursday, April 15th. Finally, Morgan Stanley lowered their price target on 2U from $55.00 to $53.00 and set an “equal weight” rating for the company in a report on Thursday, April 29th. Five research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. The company presently has an average rating of “Buy” and a consensus target price of $50.08.

Shares of TWOU opened at $39.04 on Friday. The stock has a market capitalization of $2.90 billion, a PE ratio of -11.35 and a beta of 1.10. 2U has a 1 year low of $23.87 and a 1 year high of $59.74. The company has a debt-to-equity ratio of 0.28, a quick ratio of 2.57 and a current ratio of 2.57. The company’s 50-day simple moving average is $39.15 and its 200-day simple moving average is $39.49.

In other 2U news, CTO James Kenigsberg sold 41,042 shares of the company’s stock in a transaction that occurred on Thursday, February 4th. The stock was sold at an average price of $47.00, for a total value of $1,928,974.00. Following the transaction, the chief technology officer now directly owns 129,671 shares of the company’s stock, valued at approximately $6,094,537. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 4.50% of the company’s stock.

Several hedge funds and other institutional investors have recently modified their holdings of TWOU. Riverbridge Partners LLC increased its holdings in shares of 2U by 79.8% in the 1st quarter. Riverbridge Partners LLC now owns 3,239,743 shares of the software maker’s stock valued at $123,855,000 after acquiring an additional 1,437,968 shares during the last quarter. Norges Bank bought a new stake in shares of 2U in the 4th quarter valued at approximately $31,439,000. Credit Suisse AG grew its stake in 2U by 16.8% during the 4th quarter. Credit Suisse AG now owns 1,946,201 shares of the software maker’s stock worth $77,868,000 after buying an additional 279,307 shares during the last quarter. First Trust Advisors LP grew its stake in 2U by 9.5% during the 4th quarter. First Trust Advisors LP now owns 2,800,084 shares of the software maker’s stock worth $112,031,000 after buying an additional 242,787 shares during the last quarter. Finally, Walleye Capital LLC bought a new position in 2U during the 4th quarter worth $9,379,000.

About 2U

2U, Inc operates as an education technology company in the United States, Hong Kong, South Africa, and the United Kingdom. The company operates in two segments, Degree Program and Alternative Credential. The Degree Program segment provides the technology and services to nonprofit colleges and universities to enable the online delivery of degree programs.

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