CHGG - Why Chegg Shares Are Plummeting Today | Benzinga
Chegg, Inc. (NYSE:CHGG) shares are trading lower today. Several analysts cut the price target after it released first-quarter FY24 financial results and issued second-quarter net revenue guidance below estimates.
Yesterday, Chegg posted adjusted earnings of 26 cents per share, beating market estimates of 25 cents per share. The company’s quarterly sales came in at $174.40 million versus expectations of $174.10 million.
The company said it sees total net revenues of $159 million to $161 million for the second quarter, versus market estimates of $173.58 million.
Chegg also announced the appointment of Nathan Schultz as Chief Executive Officer, effective June 1.
Piper Sandler analyst Arvind Ramnani cut the price target to $6 (from $8.5) and maintained an Underweight rating.
The analyst says that Chegg faces secular challenges that will likely remain in place and could intensify with broader advances with GenAI.
The analyst trimmed the CY25 revenue estimate to $660 million (from $716 million) and expects a revenue decline of -6.1% in FY24 ...