Zacks: Brokerages Expect 2U Inc (TWOU) Will Post Earnings of -$0.03 Per Share

Analysts expect 2U Inc (NASDAQ:TWOU) to announce ($0.03) earnings per share for the current quarter, according to Zacks. Six analysts have issued estimates for 2U’s earnings, with the highest EPS estimate coming in at ($0.02) and the lowest estimate coming in at ($0.03). 2U posted earnings of ($0.15) per share during the same quarter last year, which would indicate a positive year-over-year growth rate of 80%. The company is scheduled to issue its next earnings report after the market closes on Monday, November 5th.

According to Zacks, analysts expect that 2U will report full-year earnings of ($0.10) per share for the current financial year, with EPS estimates ranging from ($0.10) to ($0.09). For the next fiscal year, analysts expect that the company will report earnings of ($0.04) per share, with EPS estimates ranging from ($0.12) to $0.02. Zacks’ EPS calculations are an average based on a survey of sell-side research firms that cover 2U.

2U (NASDAQ:TWOU) last announced its quarterly earnings data on Thursday, August 2nd. The software maker reported ($0.19) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.40) by $0.21. The firm had revenue of $97.40 million during the quarter, compared to analysts’ expectations of $95.84 million. 2U had a negative net margin of 13.69% and a negative return on equity of 9.91%. The business’s quarterly revenue was up 49.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.11) earnings per share.

TWOU has been the subject of a number of research reports. BidaskClub cut shares of 2U from a “hold” rating to a “sell” rating in a report on Wednesday, August 1st. ValuEngine upgraded shares of 2U from a “buy” rating to a “strong-buy” rating in a report on Thursday, August 2nd. Barrington Research restated a “buy” rating and set a $100.00 price objective on shares of 2U in a research report on Friday, August 3rd. DA Davidson began coverage on shares of 2U in a research report on Wednesday, August 29th. They issued a “buy” rating and a $98.00 price target for the company. Finally, Piper Jaffray Companies began coverage on shares of 2U in a research report on Thursday, September 6th. They issued a “neutral” rating and a $94.00 price target for the company. Four investment analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company. The company currently has a consensus rating of “Buy” and a consensus price target of $90.00.

Shares of TWOU stock traded down $0.36 during trading on Tuesday, reaching $63.80. The company’s stock had a trading volume of 398,460 shares, compared to its average volume of 663,204. The company has a debt-to-equity ratio of 0.04, a quick ratio of 5.71 and a current ratio of 5.71. The stock has a market capitalization of $3.66 billion, a P/E ratio of -118.15 and a beta of 0.34. 2U has a 1-year low of $57.84 and a 1-year high of $98.58.

In other news, COO Mark Chernis sold 10,000 shares of the company’s stock in a transaction on Wednesday, September 12th. The shares were sold at an average price of $84.04, for a total transaction of $840,400.00. Following the transaction, the chief operating officer now directly owns 43,602 shares of the company’s stock, valued at approximately $3,664,312.08. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Christopher J. Paucek sold 75,000 shares of the company’s stock in a transaction on Monday, September 10th. The stock was sold at an average price of $84.42, for a total transaction of $6,331,500.00. Following the transaction, the chief executive officer now directly owns 605,191 shares in the company, valued at $51,090,224.22. The disclosure for this sale can be found here. 5.00% of the stock is currently owned by corporate insiders.

Hedge funds and other institutional investors have recently modified their holdings of the stock. Oak Ridge Investments LLC acquired a new stake in 2U in the 2nd quarter valued at about $7,020,000. Tibra Equities Europe Ltd acquired a new stake in 2U in the 2nd quarter valued at about $4,660,000. Fred Alger Management Inc. grew its stake in 2U by 3.7% in the 2nd quarter. Fred Alger Management Inc. now owns 205,675 shares of the software maker’s stock valued at $17,186,000 after acquiring an additional 7,366 shares during the last quarter. Bank of Montreal Can grew its stake in 2U by 63.4% in the 2nd quarter. Bank of Montreal Can now owns 31,580 shares of the software maker’s stock valued at $2,639,000 after acquiring an additional 12,258 shares during the last quarter. Finally, Independent Advisor Alliance acquired a new stake in 2U in the 2nd quarter valued at about $255,000.

2U Company Profile

2U, Inc operates as an education technology company in the United States, Hong Kong, South Africa, and the United Kingdom. The company operates through two segments, Graduate Program Segment and Short Course Segment. It offers front-end technology and services, including online learning platform, student and faculty and immersion support, accessibility, admissions application advising, in-program student field placements, and faculty recruiting.

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