Connected learning platform Chegg (NYSE:CHGG) slid in pre-market trading after the company’s first-quarter outlook left investors disappointed. The company expects Q1 revenues in the range of $173 million to $175 million, below Wall Street estimates of $180 million. In addition, adjusted EBITDA will likely be between $43 million and $45 million, below estimates of $54.2 million.
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The learning platform reported Q4 adjusted earnings of $0.36 per share compared to earnings of $0.40 per share in the same period last year. This was in line with analysts’ estimates.
Furthermore, the company generated total net revenues of $188 million, a decline of 8% year-over-year but above consensus estimates of $178.2 million. Chegg’s subscription services revenues also fell 6% year-over-year to $166.3 million.
Is Chegg Stock a Good Buy?
Analysts remain sidelined about CHGG stock with a Hold consensus rating based on one Buy, four Holds, and three Sells. Over the past year, CHGG has declined by more than 50%, and the average CHGG price target of $9.04 implies a downside potential of 2.8% at current levels.
