Zacks: Analysts Expect 2U Inc (TWOU) Will Announce Quarterly Sales of $85.16 Million

Equities research analysts expect 2U Inc (NASDAQ:TWOU) to post sales of $85.16 million for the current fiscal quarter, according to Zacks Investment Research. Four analysts have issued estimates for 2U’s earnings, with the lowest sales estimate coming in at $85.10 million and the highest estimate coming in at $85.31 million. 2U reported sales of $57.35 million in the same quarter last year, which indicates a positive year over year growth rate of 48.5%. The business is scheduled to report its next earnings report on Thursday, February 22nd.

According to Zacks, analysts expect that 2U will report full-year sales of $85.16 million for the current financial year, with estimates ranging from $285.10 million to $285.39 million. For the next fiscal year, analysts anticipate that the firm will report sales of $394.68 million per share, with estimates ranging from $393.54 million to $395.26 million. Zacks Investment Research’s sales calculations are a mean average based on a survey of sell-side analysts that cover 2U.

2U (NASDAQ:TWOU) last released its earnings results on Tuesday, November 7th. The software maker reported ($0.15) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.16) by $0.01. 2U had a negative return on equity of 13.02% and a negative net margin of 12.49%. The business had revenue of $70.25 million for the quarter, compared to analyst estimates of $69.36 million. During the same quarter last year, the firm posted ($0.06) earnings per share. The business’s revenue was up 35.1% compared to the same quarter last year.

A number of analysts have weighed in on TWOU shares. KeyCorp reiterated an “overweight” rating and issued a $73.00 target price on shares of 2U in a research note on Friday, November 17th. Macquarie started coverage on 2U in a research note on Thursday, December 7th. They issued an “outperform” rating and a $71.00 target price on the stock. Citigroup increased their target price on 2U from $57.00 to $80.00 and gave the stock a “buy” rating in a research note on Monday, November 20th. Needham & Company LLC reiterated a “buy” rating and issued a $66.00 target price (up previously from $62.00) on shares of 2U in a research note on Friday, October 6th. Finally, BMO Capital Markets increased their target price on 2U from $68.00 to $70.00 and gave the stock an “outperform” rating in a research note on Wednesday, November 8th. One equities research analyst has rated the stock with a hold rating, ten have given a buy rating and one has issued a strong buy rating to the company. The company presently has a consensus rating of “Buy” and an average target price of $69.64.

In other news, CMO Harsha Mokkarala sold 22,658 shares of the firm’s stock in a transaction on Friday, November 10th. The stock was sold at an average price of $63.25, for a total transaction of $1,433,118.50. Following the transaction, the chief marketing officer now owns 47,869 shares in the company, valued at $3,027,714.25. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Christopher J. Paucek sold 145,220 shares of the firm’s stock in a transaction on Thursday, November 16th. The shares were sold at an average price of $63.83, for a total value of $9,269,392.60. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 181,923 shares of company stock worth $11,588,620. Insiders own 8.40% of the company’s stock.

Several institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its stake in shares of 2U by 7.4% during the second quarter. Vanguard Group Inc. now owns 3,550,031 shares of the software maker’s stock valued at $166,567,000 after buying an additional 244,191 shares during the period. BlackRock Inc. grew its stake in 2U by 13.3% in the second quarter. BlackRock Inc. now owns 2,628,814 shares of the software maker’s stock valued at $123,344,000 after purchasing an additional 308,339 shares during the last quarter. Bamco Inc. NY grew its stake in 2U by 334.0% in the third quarter. Bamco Inc. NY now owns 2,311,371 shares of the software maker’s stock valued at $129,529,000 after purchasing an additional 1,778,783 shares during the last quarter. Alliancebernstein L.P. grew its stake in 2U by 16.2% in the second quarter. Alliancebernstein L.P. now owns 2,207,911 shares of the software maker’s stock valued at $103,595,000 after purchasing an additional 307,691 shares during the last quarter. Finally, Wells Fargo & Company MN grew its stake in 2U by 94.3% in the third quarter. Wells Fargo & Company MN now owns 1,381,103 shares of the software maker’s stock valued at $77,397,000 after purchasing an additional 670,258 shares during the last quarter.

Shares of 2U (NASDAQ TWOU) opened at $63.70 on Friday. The company has a debt-to-equity ratio of 0.05, a current ratio of 3.48 and a quick ratio of 3.48. 2U has a 52 week low of $30.68 and a 52 week high of $69.27. The firm has a market capitalization of $3,351.11, a price-to-earnings ratio of -95.07 and a beta of -0.20.

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2U Company Profile

2U, Inc is a provider of an integrated solution consisting of cloud-based software-as-a-service (SaaS) combined with technology-enabled services (together, the Platform) that allows colleges and universities to deliver online degree programs. The Company’s SaaS technology consists of a learning environment (Online Campus), which acts as the hub for all student and faculty academic and social interaction, and a suite of integrated applications, which the Company uses to launch, operate and support the Company’s clients’ programs.

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