Why Chegg Is Tumbling Today
Shares of Chegg (NYSE: CHGG) are tumbling 10% lower in morning trading Tuesday despite the online education technology leader reporting third-quarter earnings that beat analyst expectations on the top and bottom line.
Chegg's revenue surged 54% to $154 million, easily eclipsing the $144 million analysts forecast, as subscribers jumped 69% to 3.7 million. It produced adjusted earnings of $0.17 per share, which was down a penny from the year ago period, but handily beat expectations of $0.10 per share.
Chegg also upped its outlook for the full year. Following its strong third-quarter performance the educator now expects full-year 2020 revenue to be between $626 million and $628 million compared to its prior guidance of $605 million to $615 million.
Source Fool.com
