Gaotu Techedu (NYSE:GOTU) Announces Earnings Results, Misses Estimates By $0.04 EPS

Key Points

• Gaotu Techedu reported a quarterly loss of $0.05 per share, missing analysts’ estimate of a $0.01 loss by $0.04. Revenue reached $245.82 million, exceeding the $238.46 million consensus forecast.
• Shares rose 0.3% to open at $1.73, but the stock remains near the lower end of its 52-week range of $1.40 to $4.12. The company posted a negative net margin of 6.42% and negative return on equity of 29.69%.
• Analysts maintain a negative view: Weiss Ratings downgraded the stock to “sell (e+),” while the company’s average analyst rating is “Sell.” Meanwhile, insiders—including the CEO—have purchased 500,000 shares over the past 90 days.

Gaotu Techedu (NYSE:GOTU - Get Free Report) issued its quarterly earnings data on Thursday. The company reported ($0.05) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.04), FiscalAI reports. Gaotu Techedu had a negative return on equity of 29.69% and a negative net margin of 6.42%.The firm had revenue of $245.82 million for the quarter, compared to the consensus estimate of $238.46 million.

Gaotu Techedu Stock Up 0.3%

Shares of NYSE GOTU opened at $1.73 on Thursday. The stock's fifty day moving average is $1.74 and its 200 day moving average is $1.87. The stock has a market capitalization of $413.74 million, a P/E ratio of -7.19 and a beta of 0.70. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.89 and a current ratio of 0.91. Gaotu Techedu has a 52 week low of $1.40 and a 52 week high of $4.12.

Analysts Set New Price Targets

Separately, Weiss Ratings lowered shares of Gaotu Techedu from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Thursday, July 23rd. One research analyst has rated the stock with a Sell rating, According to MarketBeat, the company currently has an average rating of "Sell".

Insider Activity at Gaotu Techedu

In related news, CEO Xiangdong Chen purchased 200,000 shares of the firm's stock in a transaction that occurred on Thursday, June 11th. The shares were bought at an average cost of $2.23 per share, with a total value of $446,000.00. Following the acquisition, the chief executive officer owned 7,714,529 shares of the company's stock, valued at $17,203,399.67. This trade represents a 2.66% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Over the last ninety days, insiders acquired 500,000 shares of company stock worth $1,175,032. 44.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Gaotu Techedu

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Millennium Management LLC grew its holdings in Gaotu Techedu by 602.0% during the 1st quarter. Millennium Management LLC now owns 1,996,144 shares of the company's stock worth $6,487,000 after acquiring an additional 1,711,774 shares during the period. American Century Companies Inc. increased its stake in shares of Gaotu Techedu by 57.0% in the 2nd quarter. American Century Companies Inc. now owns 61,076 shares of the company's stock valued at $220,000 after acquiring an additional 22,164 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its position in shares of Gaotu Techedu by 157.3% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,568,492 shares of the company's stock valued at $5,662,000 after acquiring an additional 958,782 shares during the period. Walleye Trading LLC boosted its stake in Gaotu Techedu by 110.1% during the second quarter. Walleye Trading LLC now owns 21,722 shares of the company's stock worth $78,000 after acquiring an additional 11,383 shares in the last quarter. Finally, Marshall Wace LLP grew its holdings in Gaotu Techedu by 3,628.9% in the second quarter. Marshall Wace LLP now owns 788,541 shares of the company's stock worth $2,847,000 after purchasing an additional 767,394 shares during the period. Institutional investors and hedge funds own 48.42% of the company's stock.

About Gaotu Techedu

Gaotu Techedu Inc NYSE: GOTU, formerly known as GSX Techedu, is a Beijing-based provider of online education services in China. Since its founding in 2014, the company has built a technology-driven platform that delivers live, interactive tutoring sessions to students primarily in the K-12 segment. Gaotu Techedu's rebranding in 2021 underscored its commitment to leveraging cutting-edge digital tools to expand access to quality instruction across core academic subjects.

The company's main offerings include small-group and one-on-one classes in mathematics, Chinese, English, physics and chemistry, as well as targeted test preparation for high-stakes national and local examinations.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source