Shares of Chegg Inc. (CHGG) gained on Tuesday after the education technology company released a stronger than expected earnings report.
A provider of online tutoring, textbook rentals and other services to students, Chegg's stock rose 7.6% to close at $37.46, after reporting quarterly earnings of 25 cents per share.
That's up from 15 cents per share last year and surpassed the 21 cents per share estimate of analysts surveyed by Zacks, representing an earnings surprise of over 19%, according to Zacks. It is fourth time in the last four quarters the Santa Clara-based company's earnings have come in above Wall Street expectations.
Chegg's revenues reached $95.68 million during the quarter that ended in December, up from $73.51 million a year ago and 4.29% higher than what Zacks' survey of analysts predicted.
Chegg's stock has started 2019 with a bang, up 21% compared to the S&P 500's gain of 8%, according to Zacks.
Dan Rosensweig, chief executive officer of Chegg, said in a press release the company's revenue grew by 37% in 2018, "driven by the leverage from our subscription services."
"We enter the year with strong momentum, giving us the confidence to raise 2019 guidance as we focus on our mission of helping students improve their outcomes," Rosensweig said.