Wall Street analysts expect Chegg (CHGG) to post quarterly loss of $0.01 per share in its upcoming report, which indicates a year-over-year decline of 103.9%. Revenues are expected to be $114.49 million, down 34.3% from the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 12.5% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
That said, let's delve into the average estimates of some Chegg metrics that Wall Street analysts commonly model and monitor.
The collective assessment of analysts points to an estimated 'Revenue- Skills and Other' of $10.10 million. The estimate indicates a year-over-year change of -50.2%.
According to the collective judgment of analysts, 'Revenue- Subscription Services' should come in at $104.07 million. The estimate points to a change of -32.4% from the year-ago quarter.
The combined assessment of analysts suggests that 'Chegg Services subscribers' will likely reach 3.22 million. The estimate compares to the year-ago value of 4.7 million.
View all Key Company Metrics for Chegg here>>>
Chegg shares have witnessed a change of +41.7% in the past month, in contrast to the Zacks S&P 500 composite's +11.3% move. With a Zacks Rank #2 (Buy), CHGG is expected outperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Chegg, Inc. (CHGG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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