LRN - Why Stride Stock Rallied 13% at the Open Today
Shares of Stride (NYSE: LRN) , which provides online education services to schools, individuals, and businesses, rose sharply Wednesday morning, gaining as much as 13% in early trading. The big story was the company's fiscal 2022 third-quarter earnings update, which it released after the close on Tuesday.
Stride posted revenues of $421.7 million, up from $392.1 million in the fiscal third quarter of 2021. Management highlighted solid enrollment, growth in its adult learning division, and its ability to charge more per student. That said, there are two very different trends in progress here. In the company's core general education business, which accounts for roughly 75% of its top line, revenues were down by about 2% year over year. That weakness, however, was more than offset by the huge 51.6% increase in revenues from its career learnings segment. And while the company noted strong enrollment as a positive, general education enrollment fell by 7.7%, with higher pricing offsetting that drop to some degree. Enrollment in career education rose by 42.4%, and the company has raised its prices in this segment too.
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Why Stride Stock Rallied 13% at the Open Today