K12 (NYSE: LRN ) is expected to report Q3 earnings around May 2. 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 grow 19.5% and EPS will increase 27.8%.
The average estimate for revenue is $212.9 million. On the bottom line, the average EPS estimate is $0.23.
Last quarter, K12 logged revenue of $206.0 million. GAAP reported sales were 24% higher than the prior-year quarter's $166.5 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 $0.24. GAAP EPS of $0.24 for Q2 were 118% higher than the prior-year quarter's $0.11 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 40.4%, 20 basis points worse than the prior-year quarter. Operating margin was 7.9%, 360 basis points better than the prior-year quarter. Net margin was 4.6%, 210 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $844.9 million. The average EPS estimate is $0.69.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 163 members out of 187 rating the stock outperform, and 24 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give K12 a green thumbs-up, and nine 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 $26.86.
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