Shares of Stride Inc. soared after hours on Tuesday after the online-education company beat Wall Street’s expectations for second-quarter sales and profit as it saw growth in enrollment powered by career-related learning.
also raised its full-year outlook, and its forecasts for both the third quarter and the fiscal year exceeded analysts’ expectations.
The company’s stock was up more than 16% in extended trading as of 5:30 p.m. Eastern after a 1.7% drop in the regular session to close at $32.
Stride reported second-quarter net income of $50.7 million, or $1.19 a share. That compares with $42 million, or $1 a share, in the year-ago period. Revenue rose to $458.4 million from $409.5 million in the year-ago quarter.
Analysts surveyed by FactSet had forecast earnings of $1.05 a share on revenue of $443.2 million. The company’s executives did not provide adjusted earnings figures.
Stride, which offers online curriculum and services for middle- and high-school students under the Destinations Career Academy brand, actually saw year-over-year declines for the quarter in total average enrollment (5.3%) and general-education enrollment (23.6%), but reported 58.2% growth in career-learning enrollment for adults. The company also cited increases in revenue per enrollment as a factor in improved revenue.
Stride expects third-quarter revenue in the range of $445 million to $465 million, compared with analysts’ expectation of $437.5 million. In addition, the company raised its full-year revenue outlook to a range of $1.775 billion and $1.815 billion, while analysts had forecast revenue of $1.737 billion.
Shares of Stride are up more than 18% in the past 52 weeks, and have risen 2.3% year to date.