Why Stride Stock Rocketed 35% at the Open Today
Shares of Stride (NYSE: LRN), a technology-based education company, rose a dramatic 35% in early trading on Jan. 26. Although an hour into the trading day, that massive gain had cooled somewhat, the stock was still higher by an impressive 30% or so. The company's fiscal second-quarter 2022 earnings release, which hit the Street after the close on Jan. 25, was the cause of all the excitement.
Stride reported revenues of $409.5 million in its fiscal second quarter, up from $376.1 million in the same period of 2021. That's roughly a 9% increase. The company's general education division, which provides services to high schools and such, saw revenues decline 0.2%, remaining basically flat. The real strength came from the company's career learning segment, where sales in the middle and high school area increased 46.5% while adult sales rose by 94.6%. Overall career learning segment revenues were higher by 54.9%, clearly driving the company's top-line gain. Enrollment in Stride's career learning segment was up 38.3% in the quarter, while general education enrollment fell by 9.7%. Given the relative sizes of the two divisions, overall enrollment ended off by 2.1%.
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Source Fool.com
