2U Inc (NASDAQ:TWOU) Expected to Post Earnings of -$0.44 Per Share

Analysts expect 2U Inc (NASDAQ:TWOU) to report ($0.33) earnings per share (EPS) for the current quarter, Zacks Investment Research reports. Seven analysts have issued estimates for 2U’s earnings. The lowest EPS estimate is ($0.43) and the highest is ($0.26). 2U posted earnings per share of ($0.41) in the same quarter last year, which would indicate a positive year-over-year growth rate of 19.5%. The business is scheduled to announce its next quarterly earnings report on Tuesday, November 10th.

According to Zacks, analysts expect that 2U will report full-year earnings of ($1.23) per share for the current fiscal year, with EPS estimates ranging from ($1.41) to ($1.03). For the next financial year, analysts anticipate that the company will report earnings of ($0.90) per share, with EPS estimates ranging from ($1.32) to ($0.52). Zacks’ earnings per share averages are an average based on a survey of sell-side analysts that cover 2U.

2U (NASDAQ:TWOU) last posted its quarterly earnings data on Thursday, July 30th. The software maker reported ($0.34) earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of ($0.75) by $0.41. 2U had a negative return on equity of 22.05% and a negative net margin of 46.21%. The business had revenue of $182.69 million during the quarter, compared to the consensus estimate of $175.12 million.

A number of brokerages have recently issued reports on TWOU. BMO Capital Markets raised their price objective on 2U from $31.00 to $43.00 and gave the company an “outperform” rating in a research note on Monday, May 18th. Credit Suisse Group upgraded shares of 2U from a “neutral” rating to an “outperform” rating and lifted their target price for the company from $28.00 to $48.00 in a research note on Friday. Jefferies Financial Group started coverage on shares of 2U in a research note on Thursday, July 16th. They issued a “buy” rating and a $50.00 price target on the stock. ValuEngine downgraded shares of 2U from a “buy” rating to a “hold” rating in a report on Saturday. Finally, Zacks Investment Research downgraded shares of 2U from a “buy” rating to a “hold” rating in a research note on Saturday, May 9th. Four analysts have rated the stock with a hold rating, ten have issued a buy rating and one has issued a strong buy rating to the stock. The company has a consensus rating of “Buy” and a consensus target price of $39.50.

Shares of NASDAQ TWOU opened at $47.10 on Friday. The stock has a fifty day simple moving average of $39.01 and a two-hundred day simple moving average of $28.63. 2U has a 1-year low of $11.37 and a 1-year high of $48.23. The firm has a market cap of $2.81 billion, a price-to-earnings ratio of -9.61 and a beta of 0.78. The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 0.48.

In related news, CTO James Kenigsberg sold 33,000 shares of 2U stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $32.87, for a total value of $1,084,710.00. Following the completion of the transaction, the chief technology officer now owns 157,971 shares in the company, valued at $5,192,506.77. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Christopher J. Paucek sold 150,000 shares of 2U stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $38.12, for a total transaction of $5,718,000.00. Following the completion of the transaction, the chief executive officer now owns 702,600 shares of the company’s stock, valued at approximately $26,783,112. The disclosure for this sale can be found here. Insiders sold a total of 216,900 shares of company stock worth $8,396,010 over the last three months. Insiders own 4.50% of the company’s stock.

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Victory Capital Management Inc. grew its stake in shares of 2U by 11.9% during the 4th quarter. Victory Capital Management Inc. now owns 11,820 shares of the software maker’s stock worth $284,000 after purchasing an additional 1,257 shares during the period. Bank of New York Mellon Corp grew its position in shares of 2U by 14.6% during the fourth quarter. Bank of New York Mellon Corp now owns 219,716 shares of the software maker’s stock worth $5,270,000 after buying an additional 28,039 shares in the last quarter. Alliancebernstein L.P. grew its position in shares of 2U by 5.6% during the fourth quarter. Alliancebernstein L.P. now owns 31,534 shares of the software maker’s stock worth $757,000 after buying an additional 1,683 shares in the last quarter. Geode Capital Management LLC boosted its holdings in 2U by 5.2% in the fourth quarter. Geode Capital Management LLC now owns 695,646 shares of the software maker’s stock worth $16,688,000 after purchasing an additional 34,559 shares during the period. Finally, Sunbelt Securities Inc. acquired a new position in 2U in the fourth quarter worth $2,783,000.

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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