Chegg (NYSE:CHGG) Releases Earnings Results, Beats Estimates By $0.26 EPS

Key Points

• Chegg (NYSE:CHGG) reported an earnings per share (EPS) of $0.03, beating analyst estimates by $0.26, though the company continues to experience negative metrics with a return on equity of -6.22% and a net margin of -151.10%.
• The stock price dropped 6.8% to $1.30 following the earnings announcement, with a current market capitalization of $138.01 million.
• Analysts have mixed views on Chegg, with three rating it as a sell, five maintaining a hold rating, and an average target price set at $1.70.

Chegg (NYSE:CHGG - Get Free Report) issued its earnings results on Tuesday. The technology company reported $0.03 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.23) by $0.26, Zacks reports. Chegg had a negative return on equity of 6.22% and a negative net margin of 151.10%. Chegg updated its Q3 2025 guidance to EPS.

Chegg Stock Down 6.8%

Shares of NYSE:CHGG traded down $0.10 on Tuesday, reaching $1.30. The company had a trading volume of 3,937,317 shares, compared to its average volume of 3,350,787. Chegg has a twelve month low of $0.44 and a twelve month high of $2.73. The stock has a 50-day moving average price of $1.36 and a 200 day moving average price of $1.09. The stock has a market capitalization of $138.01 million, a P/E ratio of -0.16 and a beta of 1.77. The company has a quick ratio of 1.23, a current ratio of 1.23 and a debt-to-equity ratio of 0.34.

Analysts Set New Price Targets

Several research analysts recently weighed in on the company. Needham & Company LLC reissued a "hold" rating on shares of Chegg in a research report on Monday, May 12th. Wall Street Zen started coverage on Chegg in a research report on Thursday, April 17th. They set a "hold" rating on the stock. Finally, JPMorgan Chase & Co. restated an "underweight" rating on shares of Chegg in a research note on Tuesday, April 8th. Three equities research analysts have rated the stock with a sell rating and five have given a hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $1.70.

Institutional Trading of Chegg

Institutional investors and hedge funds have recently made changes to their positions in the stock. Strs Ohio acquired a new position in shares of Chegg during the 1st quarter worth about $56,000. Empowered Funds LLC grew its stake in shares of Chegg by 8.5% in the 1st quarter. Empowered Funds LLC now owns 424,563 shares of the technology company's stock valued at $271,000 after purchasing an additional 33,269 shares during the period. Finally, AQR Capital Management LLC grew its stake in shares of Chegg by 95.9% in the 1st quarter. AQR Capital Management LLC now owns 3,011,879 shares of the technology company's stock valued at $1,925,000 after purchasing an additional 1,474,640 shares during the period. Institutional investors and hedge funds own 95.18% of the company's stock.

About Chegg

Chegg, Inc operates a direct-to-student learning platform that helps learners build essential life and job skills to accelerate their path from learning programs in the United States and internationally. Its subscription services include Chegg Study, which offers personalized step-by-step learning support from AI, computational engines, and subject matter experts, as well as Tinger Gold and DashPash Student services; Chegg Writing that provides students with a suite of tools, such as plagiarism detection scans, grammar and writing fluency checking, expert personalized writing feedback, and premium citation generation; Chegg Math, a step-by-step math problem solver and calculator that helps students to solve problems; Chegg Study Pack, a bundle of various subscription product offerings, including Chegg Study, Chegg Writing, and Chegg Math services; and Busuu, an online language learning platform that offers comprehensive support through self-paced lessons, live classes with expert tutors, and a community of members to practice alongside.

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