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What to Watch for in Chegg’s Q3 Earnings

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Chegg is scheduled to release its third-quarter earnings report early next week. What can investors expect from Chegg's earnings? Should you buy the stock before the earnings report?

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When is Chegg’s earnings date?

Chegg will likely report its third-quarter results on Oct. 26 during the after-hours trading session. The education technology company has scheduled an earnings conference call on the same day at 4:30 p.m. ET.

In the third quarter, Wall Street analysts expect Chegg to post sales of $143.68 million, which would be 52.6 percent higher than $94.15 million in sales in the third quarter of 2019. Analysts also expect Chegg to post an adjusted EPS of $0.10 in the third quarter compared to $0.18 in the same quarter a year ago. In the second quarter of 2020, Chegg reported an adjusted EPS of $0.37 and sales of $153 million.

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When Does Chegg Report Earnings
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What is Chegg’s stock price today?

Chegg stock trades on the NYSE under the ticker symbol “CHGG.” The stock was up about 1.1 percent at $87.50 in the pre-market trading session on Friday, Oct. 23 as of 9:21 a.m. ET. The stock rose 0.6 percent on Oct. 22 and closed at $86.55 with a market capitalization of $11.1 billion.

Chegg stock has risen by 2.6 percent in the last five days and 164.6 percent in the last year. The stock is trading 3.6 percent below its 52-week high of $89.82 and 234.3 percent above its 52-week low of $25.89. Right now, Chegg doesn’t pay a dividend.

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What is Chegg’s stock forecast?

Currently, analysts' stock price forecast for Chegg is $93.93, which suggests an 8.5 percent upside. The highest target price of $105 implies a 21.3 percent upside, while the lowest target price of $77 suggests an 11 percent downside. Among the 15 Wall Street analysts tracking Chegg, 12 recommend a buy and three recommend a hold. None of the analysts recommend a sell.

Chegg stock could be a buy on every dip for a digital learning future. The company provides online tutoring, digital and physical textbook rentals, and other student services. There's an ongoing demand for Chegg’s services because none of its rivals offer a robust platform. As a result, the company’s average revenue per user will likely grow going forward.

Chegg’s investor relations

Chegg has scheduled a third-quarter 2020 earnings conference call on Oct. 26 at 4:30 p.m. ET. Investors and financial analysts can access the live webcast of the call on the company’s investor relations website.

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