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By Christiana Sciaudone
Investing.com -- Chegg (NYSE:CHGG) shares were little changed after revenue for the previous quarter was better than expected, but sales guidance came in below estimates.
The learning platform has boomed as college students were sent home from school amid the deadly pandemic that has killed millions around the world. But things may be shifting for Chegg, as college campuses reopen and demand slips.
Sales for the first quarter rose 51%, to $198.4 million, from the year earlier, and beat the estimate of $185 million. But Chegg estimated sales for the current quarter at between $188 million and $190 million, compared to the average analyst forecast of $192 million, according to data compiled by Investing.com. Profit of 28 cents for the previous quarter also missed the estimate of 30 cents.
The weaker outlook helped lead to price target cuts at Raymond James and Citi.