Shares of Chegg (NYSE: CHGG) were down 18% as of 12:08 p.m. ET on Tuesday. The company reported earnings results that were above analysts' consensus estimates for the fourth quarter, while management offered guidance that was below expectations.
The post-earnings sell-off brings the stock down 33% year to date.
Revenue fell 1% year over year in the fourth quarter, which got a lift from a 4% year-over-year increase in subscription services. However, low enrollment, a strong labor market, and high inflation continue to be headwinds reducing traffic to education support sites.
Source Fool.com