Chegg Inc. CHGG,
The shares plunged 20% in after-hours trading Monday after executives led a second straight year of shrinking sales. The online education company reported fourth-quarter earnings of $1.9 million, or one penny per share, on sales of $205.2 million, down from $207.5 million a year earlier. After adjusting for stock-based compensation and other effects, the company reported earnings of 40 cents per share, up from 38 cents per share a year earlier. Analysts expect average adjusted earnings of 38 cents per share on sales of $202.1 million. While Chegg beat expectations in the holiday quarter, its forecast did not. Chegg executives posted first-quarter revenue of $184 million to $186 million against an average analyst forecast of $200.3 million, and full-year sales of $745 million to $765 million, while analysts on average they were projecting $817.5 million, according to FactSet. After ending 2022 with $766.9 million in revenue, down 1.2% from 2021, the forecast suggests a second straight year of sales declines. After closing down 1.5% at $21.03 on Monday, shares sank below $17 in after-hours trading following the earnings release.