Investors could have learned quite a bit about successful stocks this week by following developments with Stride (LRN 2.36%). The educational services company posted a fresh quarterly earnings report, and both pundits and market participants liked what they heard. As of late Thursday evening, Stride's share price had risen by more than 17% week to date, according to data compiled by S&P Global Market Intelligence.
Beating and raising
Stride had a good fiscal third quarter of 2024, with notable gains in enrollment translating to double-digit rises in both revenue and per-share profitability. The two line items also came in well above the consensus analyst estimates, plus the company raised its full fiscal year guidance for revenue and non-GAAP (adjusted) operating income.
When a publicly traded company delivers a beat-and-raise quarter, analysts following it are often quick to get more bullish on its prospects. So it was with Stride, as several prognosticators made upward revisions to their takes on the stock.
Morgan Stanley's Greg Parrish raised his Stride price target to $70 per share from his preceding $65, although he didn't change his equal weight (hold) recommendation. Citi's Thomas Singlehurst feels Stride has more potential for investors, as he upped his target to $77 per share, although this was just a bump from his previous $75. Unlike Parrish, Singlehurst rates Stride a buy.
More growth in store?
For the most part, those Stride-tracking analysts are expecting continued improvement from the company.
Their collective estimate of $2.03 billion for full fiscal year 2024 is near the midpoint of management's revised guidance. Meanwhile, they're expecting Stride to grow this figure by 7% in fiscal 2025. Profitability should go on a brisker walk this year, with a 46% rise in per-share net income before slowing down to 11% the following frame.
