Chegg Inc. (CHGG) 

Chegg Inc. shares jumped on the New York Stock Exchange (NYSE) on Tuesday after the online textbook rental company reported its fourth-quarter results the day before.

The company went past the estimates for both earnings and revenue, pushing up the stock by about 15.6% by 12:10 pm. EST. On Monday, the company reported $3.7 million fourth-quarter net income, washing off last year’s loss in the same period.

CHGG Outlook & Earnings

On a per-share basis, the California-based company reported it had 3 cents profit. Costs related to acquisitions and mergers, and earnings adjusted for stock-option expense were 15 cents per share.

Wall Street was not expecting the results, with a survey by Zacks Investment Research on analysts showing an average estimate for earnings of 12 cents per share.

CEO Comments

“We remain positive we will accomplish the financial model targets for 2018 that we laid out three years ago, more so to achieve 25 percent adjusted EBITDA margin, at the same time growing the service revenue of our company by more than 30 percent. In addition, as a result of us transitioning to a digital model where we do every process digitally, we have become more predictable, with most of our revenue coming from subscriptions, thus giving making us more visible. With that, and based our strong performance in Q4, our business is raising its 2018 guidance.” –Madison