Gaotu Techedu (NYSE:GOTU) Posts Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Gaotu Techedu reported a Q2 EPS of ($0.12), surpassing the consensus estimate of ($0.16) by $0.04.
• The company has a negative net margin of 18.07% and a negative return on equity of 42.83%.
• Recent institutional activities show a strong interest in Gaotu Techedu, with hedge funds owning 48.42% of the stock following several significant purchases in the last quarter.

Gaotu Techedu (NYSE:GOTU - Get Free Report) announced its earnings results on Tuesday. The company reported ($0.12) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.16) by $0.04, Zacks reports. Gaotu Techedu had a negative return on equity of 37.66% and a negative net margin of 12.97%.The firm had revenue of $27.09 million during the quarter, compared to analyst estimates of $182.85 million. Gaotu Techedu updated its Q3 2025 guidance to EPS.

Gaotu Techedu Stock Up 4.9%

Shares of NYSE:GOTU traded up $0.19 during trading on Thursday, hitting $3.97. The stock had a trading volume of 1,777,358 shares, compared to its average volume of 708,652. Gaotu Techedu has a 12 month low of $1.87 and a 12 month high of $4.59. The company has a market capitalization of $1.00 billion, a PE ratio of -10.43 and a beta of 0.20. The firm's fifty day moving average is $3.68 and its 200 day moving average is $3.44.

Gaotu Techedu declared that its Board of Directors has initiated a stock repurchase program on Thursday, May 15th that permits the company to repurchase $0.00 in shares. This repurchase authorization permits the company to buy shares of its stock through open market purchases. Shares repurchase programs are generally a sign that the company's board believes its shares are undervalued.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Walleye Trading LLC increased its position in Gaotu Techedu by 110.1% during the 2nd quarter. Walleye Trading LLC now owns 21,722 shares of the company's stock valued at $78,000 after buying an additional 11,383 shares in the last quarter. American Century Companies Inc. boosted 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 worth $220,000 after buying an additional 22,164 shares during the last quarter. Sei Investments Co. purchased a new position in shares of Gaotu Techedu in the 2nd quarter worth $311,000. Jump Financial LLC purchased a new position in shares of Gaotu Techedu in the 2nd quarter worth $682,000. Finally, Ameriprise Financial Inc. purchased a new position in Gaotu Techedu during the second quarter valued at $910,000. Institutional investors own 48.42% of the company's stock.

About Gaotu Techedu

Gaotu Techedu Inc, a technology-driven education company, provides learning services, educational content, and digitalized learning products in the People's Republic of China. The company offers traditional online academic subject tutoring services that covers academic subjects, such as mathematics, English, Chinese, physics, chemistry, biology, history, geography, and political science for students; non-academic tutoring services; personal interest courses comprising chess learning, family relationships and education, humanities, and science courses; and professional courses primarily for college students and adults preparing for professional qualification exams, such as teacher's qualification, Chartered Financial Analyst designation, Certified Public Accountant designation, and other exams.