K12 (NYSE: LRN ) is expected to report Q4 earnings around Sep. 9. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict K12's revenues will increase 28.9% and EPS will remain in the red.
The average estimate for revenue is $165.4 million. On the bottom line, the average EPS estimate is -$0.04.
Last quarter, K12 chalked up revenue of $178.2 million. GAAP reported sales were 37% higher than the prior-year quarter's $130.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, EPS came in at $0.18. GAAP EPS of $0.18 for Q3 were 13% higher than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 40.5%, 20 basis points better than the prior-year quarter. Operating margin was 6.5%, 180 basis points worse than the prior-year quarter. Net margin was 3.9%, 40 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $703.6 million. The average EPS estimate is $0.41.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 176 members out of 195 rating the stock outperform, and 19 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give K12 a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on K12 is outperform, with an average price target of $31.29.
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