By Denny Jacob
Stride Inc. shares gained 28% to $40.84 following revenue growth in the second quarter and a raised revenue outlook for fiscal 2023, putting it on pace for its highest close since Oct. 25.
The technology-based educational company logged net income of $50.7 million, or $1.19 a share, for the second quarter ended Dec. 31, compared to $42 million, or $1 a share, a year earlier. Analysts polled by FactSet expected $1.05 a share.
Revenue rose to $458.4 million from $409.5 million. Analysts polled by FactSet expected $443.2 million. The company attributed the growth to strength in enrollment, increases in revenue per enrollment and growth in adult learning.
Stride also issued guidance for the third quarter, forecasting revenue between $445 million and $465 million. Analysts polled by FactSet expected $437.5 million.
The company raised its fiscal 2023 revenue outlook to $1.78 billion to $1.82 billion from previous guidance for $1.71 billion to $1.79 billion. It also narrowed its capital expenditures range to $70 million and $75 million from $70 million to $80 million.
On Wednesday, Morgan Stanley raised its price target to $46 a share from $41 and Barrington Research maintained its $50 a share price target.
Shares are up 48% over the last 12 months.
Write to Denny Jacob at email@example.com
Read More: Stride Shares Gain 28% on 2Q Results, Raised FY23 Outlook