: Chegg stock declines following earnings, outlook beats

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Chegg Inc. CHGG shares declined in the extended session Monday after the digital textbook and scholastic services company’s results and outlook topped Wall Street estimates following a year when its share price has more than doubled. Chegg shares declined 2% after hours, following an initial 10% drop after the report hit and a 0.1% decline in the regular session to close at $86.69. As of Monday’s close, Chegg shares are up 129% for the year, compared with a 5.3% rise in the S&P 500 index SPX. The company reported a third-quarter loss of $37.1 million, or 29 cents a share, compared with a loss of $11.5 million, or 10 cents a share, in the year-ago period. Adjusted earnings were 17 cents a share. Revenue rose to $154 million from $94.2 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 10 cents a share on revenue of $143.9 million. Chegg expects fourth-quarter revenue of $188 million to $190 million, while analysts had forecast on revenue of $183.4 million. For 2021, the company expects revenue of about $775 million, while analysts had forecast $758.5 million.
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