Chegg stock rallies 8% on earnings beat, guidance increase
Chegg Inc. CHGG, +1.16% shares rose more than 8% in the extended session Monday after the online education services company reported fourth-quarter results well above Wall Street expectations and raised its guidance for 2019. Chegg said it earned $5.3 million, or 4 cents a share, in the quarter, compared with $3.7 million, or 3 cents a share, in the year-ago period. Adjusted for one-time items, Chegg earned $31.8 million, or 25 cents a share, in the quarter, compared with $18.1 million, or 15 cents a share, a year ago. Revenue rose 30% to $95.7 million, the company said. Analysts polled by FactSet had expected the company to report adjusted earnings of 21 cents a share on sales of $91.6 million. Chegg said it was increasing its revenue guidance for 2019 as it ended 2018 "with more momentum than expected." Chegg guided for 2019 revenue between $390 million and $395 million. The analysts surveyed by FactSet expect 2019 sales of $388 million. Chegg shares ended the regular trading day up 1.2%.
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