Online education platform, 2U (NASDAQ:TWOU) will be announcing earnings results today afternoon. Here's what you need to know.
Last quarter 2U reported revenues of $241.4 million, up 1.79% year on year, missing analyst expectations by 5.03%. It was a weak quarter for the company, with a full year guidance missing analysts' expectations.
Is 2U buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting 2U's revenue to decline 0.15% year on year to $232 million, a deceleration on the 15.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.03 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1.6%.
With 2U being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for software stocks, but the whole sector have been hit hard on fears of higher interest rates, with stocks down on average 5.91% over the last month. 2U is up 19.4% during the same time, and is heading into the earnings with analyst price target of $12.05, compared to share price of $6.26.
One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.
The author has no position in any of the stocks mentioned.