Zacks: Brokerages Expect 2U Inc (NASDAQ:TWOU) Will Post Quarterly Sales of $149.38 Million

Wall Street brokerages expect 2U Inc (NASDAQ:TWOU) to report sales of $149.38 million for the current quarter, Zacks Investment Research reports. Four analysts have provided estimates for 2U’s earnings, with the lowest sales estimate coming in at $147.60 million and the highest estimate coming in at $150.15 million. 2U posted sales of $106.96 million during the same quarter last year, which would indicate a positive year over year growth rate of 39.7%. The company is scheduled to announce its next quarterly earnings results on Monday, November 4th.

On average, analysts expect that 2U will report full-year sales of $569.42 million for the current fiscal year, with estimates ranging from $565.96 million to $571.07 million. For the next financial year, analysts anticipate that the firm will report sales of $718.97 million, with estimates ranging from $659.77 million to $749.17 million. Zacks’ sales calculations are a mean average based on a survey of research firms that that provide coverage for 2U.

2U (NASDAQ:TWOU) last posted its earnings results on Tuesday, July 30th. The software maker reported ($0.43) EPS for the quarter, beating the Zacks’ consensus estimate of ($0.59) by $0.16. 2U had a negative return on equity of 7.63% and a negative net margin of 11.39%. The company had revenue of $135.50 million for the quarter, compared to the consensus estimate of $124.38 million. During the same quarter in the previous year, the business earned ($0.19) earnings per share. The company’s revenue for the quarter was up 39.1% on a year-over-year basis.

A number of research firms have commented on TWOU. Robert W. Baird downgraded 2U from an “outperform” rating to a “neutral” rating and reduced their target price for the company from $58.00 to $29.00 in a research report on Wednesday, July 31st. BidaskClub cut 2U from a “sell” rating to a “strong sell” rating in a research note on Saturday, June 1st. DA Davidson cut 2U from a “buy” rating to a “neutral” rating and set a $27.00 target price for the company. in a research note on Wednesday, July 31st. Oppenheimer cut 2U from an “outperform” rating to a “market perform” rating in a research note on Wednesday, July 31st. Finally, Berenberg Bank cut 2U from a “buy” rating to a “hold” rating and lowered their target price for the stock from $81.00 to $17.00 in a research note on Thursday, August 1st. Two equities research analysts have rated the stock with a sell rating, twelve have given a hold rating and two have issued a buy rating to the company’s stock. 2U has an average rating of “Hold” and an average target price of $49.08.

In other news, insider Matthew J. Norden sold 1,650 shares of the company’s stock in a transaction dated Friday, May 10th. The stock was sold at an average price of $39.31, for a total transaction of $64,861.50. Following the completion of the transaction, the insider now directly owns 14,142 shares of the company’s stock, valued at approximately $555,922.02. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Gregory K. Peters acquired 12,459 shares of the stock in a transaction dated Tuesday, May 14th. The shares were acquired at an average cost of $40.15 per share, with a total value of $500,228.85. Following the completion of the transaction, the director now owns 25,744 shares in the company, valued at approximately $1,033,621.60. The disclosure for this purchase can be found here. Over the last ninety days, insiders have sold 9,155 shares of company stock valued at $356,942. Insiders own 4.92% of the company’s stock.

Several large investors have recently added to or reduced their stakes in TWOU. First Trust Advisors LP lifted its holdings in shares of 2U by 53.9% in the 2nd quarter. First Trust Advisors LP now owns 2,524,290 shares of the software maker’s stock valued at $95,014,000 after purchasing an additional 884,527 shares during the last quarter. Frontier Capital Management Co. LLC lifted its holdings in shares of 2U by 57.0% in the 1st quarter. Frontier Capital Management Co. LLC now owns 2,279,721 shares of the software maker’s stock valued at $161,518,000 after purchasing an additional 827,915 shares during the last quarter. TimesSquare Capital Management LLC lifted its holdings in shares of 2U by 0.7% in the 2nd quarter. TimesSquare Capital Management LLC now owns 1,901,080 shares of the software maker’s stock valued at $71,557,000 after purchasing an additional 13,000 shares during the last quarter. William Blair Investment Management LLC lifted its holdings in shares of 2U by 0.7% in the 1st quarter. William Blair Investment Management LLC now owns 1,605,992 shares of the software maker’s stock valued at $113,785,000 after purchasing an additional 10,846 shares during the last quarter. Finally, Villere ST Denis J & Co. LLC lifted its holdings in shares of 2U by 104.7% in the 2nd quarter. Villere ST Denis J & Co. LLC now owns 1,539,816 shares of the software maker’s stock valued at $57,958,000 after purchasing an additional 787,686 shares during the last quarter.

NASDAQ:TWOU traded up $0.75 on Friday, reaching $14.18. The company’s stock had a trading volume of 3,214,368 shares, compared to its average volume of 1,283,539. 2U has a 12-month low of $11.37 and a 12-month high of $90.31. The company has a current ratio of 2.19, a quick ratio of 2.19 and a debt-to-equity ratio of 0.35. The firm has a market capitalization of $838.49 million, a price-to-earnings ratio of -22.51 and a beta of 0.83. The company has a 50 day moving average of $34.55.

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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Earnings History and Estimates for 2U (NASDAQ:TWOU)

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