NEW YORK (TheStreet) -- Shares of Chegg (CHGG) - Get Chegg, Inc. Report are falling by 20.41% to $4.25 in after-hours trading on Monday, after posting its 2015 fourth quarter results after today's market close.
The Santa Clara, CA-based online textbook company reported non-GAAP earnings of 14 cents per share, higher than analyst's estimates for earnings of 12 cents per share.
Revenue fell by 19% to $68.15 million year-over-year and did not meet Wall Street's expectations of $72.14 million.
The company specializes in online textbook rentals, homework help, online tutoring, scholarships and internship matching for high school and college students.
"We continue to see strong growth in Chegg Services, particularly Chegg Study, where our investments in product quality led to record subscribers, renewals and engagement," CEO Dan Rosensweig said in a statement.
"Driven by our higher margin Chegg Services, we also delivered our first full year of non-GAAP profitability, and we are beginning to see the leverage in our student-centric business model," he added.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D+ on the stock.
This is driven by a number of negative factors, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered.
The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: CHGG