K12 (NYSE:LRN), provider of a learning platform, saw its shares surge on Wednesday. The stock rose as much as 27.9% following the company's fiscal first-quarter earnings release. As of 11:51 a.m. EDT, the stock was up 25.5%.
Better-than-expected overall results and an optimistic outlook were likely key reasons for the market's bullishness toward K12 on Wednesday.
Helped by a 6.9% year-over-year increase in managed public school (MPS) enrollments, K12 reported revenue of $251.3 million, crushing a consensus analyst estimate of about $227 million. Fiscal first-quarter revenue was up 9.8% from the year-ago quarter.
K12's loss per share for its fiscal first quarter was $0.22, narrower than analysts' average forecast for a loss of $0.40.
Highlighting K12's momentum, this was the company's third quarter in a row of accelerating year-over-year growth in MPS enrollments. In addition, this was K12's highest enrollment growth rate in six years.
K12's outlook was much better than analysts expected. Management guided for fiscal second-quarter revenue between $250 million and $255 million, above a consensus analyst forecast for about $229 million. For the full 2019 fiscal year, management forecast $1 billion to $1.01 billion in revenue, beating analysts' average estimate for $951 million.
K12 management expects its fiscal-2019 adjusted operating income to increase more than 20% year over year to $56 million to $60 million.