Shares of Chegg Inc. CHGG, +3.65% rallied more than 10% in the extended session Monday after the education technology and student services company reported fourth-quarter earnings well above Wall Street expectations and said it ended the year well despite COVID-19 uncertainty. Chegg said it earned $24 million, or 15 cents a share, compared with $26 million, or 18 cents a share, in the year-ago quarter. Adjusted for one-time items, Chegg earned 38 cents a share. Sales rose 1% to $207.5 million. Analysts polled by FactSet expected Chegg to report adjusted earnings of 31 cents a share on sales of $195 million. Enrollment was lower in the fall, but Chegg saw “that schoolwork did eventually pick up so the need for Chegg increased throughout the quarter, helping us exit the year on a higher note,” Chief Executive Dan Rosensweig said in a statement. Chegg shares ended the regular trading day up 3.7%.
