Stock Alert: Chegg Gains As More Turn To Online Education

(RTTNews) - Education technology company Chegg, Inc. (CHGG) is one of the biggest gainers in the recent months with more than 140% surge in stock within three months.

Chegg offers online tutoring, rental, and sale of digital as well as physical textbooks, and other student services including helping them obtain grants and loans among other things.

Online education platforms have picked up popularity more than ever these days as educational institutions are closed due to coronavirus pandemic.

While talking to analysts during the first-quarter earnings call, Dan Rosensweig, Co-Chairperson and Chief Executive Officer of the company commented, " As we think about the lasting impact on the future of higher education globally, we see these trends continuing."

Early this month, when the company reported first-quarter results, revenue had grown 35% year-over-year to $131.6 million, driven by subscriber growth of 35%. Earnings of $0.22 per share beat the average estimate of analysts polled by Thomson Reuters at $0.15.

For the second quarter, the company's revenue outlook of $135 million - $137 million remains above the consensus estimate of $123.81 million. Chegg sees subscriber growth to be more than 45% for the period.

Friday, Chegg stock was up $1.36 or 2.08% before closing at $66.66.