Analysts Lower Their Chegg Forecasts After Q2 Results – Chegg (NYSE:CHGG)

Chegg, Inc. CHANGE reported optimistic financial results for the second quarter, but on Monday gave a revenue forecast for the third quarter that was lower than estimates.

Chegg’s second-quarter revenue fell 11% year over year to $163.1 million, beating consensus estimates of $159.98 million, according to Benzinga Pro. The company reported quarterly adjusted earnings of 28 cents per share, beating analyst estimates of 22 cents per share.

“The second quarter was a milestone for Chegg, as we completed our restructuring, outlined an exciting vision for the future, and completed the rollout of conversational learning and automated solutions just in time for the start of the school year,” said Nathan Schultz, president and CEO of Chegg.

Chegg expects third-quarter revenue to be in the range of $133 million to $135 million. Subscription revenue to be in the range of $116 million to $118 million. Third-quarter gross margin to be in the range of 67% to 68%. Chegg expects third-quarter adjusted EBITDA to be in the range of $19 million to $21 million.

Chegg shares fell 22.5% to $2.27 on Tuesday.

Analysts changed their price targets for Chegg following the financial results announcement.

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