K12, Inc. (LRN) Tops Q2 EPS by 1c, Revenues Beat; Offers Q3 Revenue Views Below Consensus, Updated FY20 Revenue Outlook Above Consensus
K12, Inc. (NYSE: LRN) reported Q2 EPS of $0.52, $0.01 better than the analyst estimate of $0.51. Revenue for the quarter came in at $257.6 million versus the consensus estimate of $257.21 million.
GUIDANCE:
K12, Inc. sees Q3 2020 revenue of $252-255 million, versus the consensus of $255.56 million.
K12, Inc. sees FY2020 revenue of $1.033-1.04 billion, versus the consensus of $1.03 billion.
Outlook
The Company announced it closed its acquisition of Galvanize Inc., a leader in developing talent and capabilities for individuals and corporations in technical fields such as software engineering and data science, on January 27, 2020. More information on the acquisition can be found on K12’s Investor Relations website. The Company is announcing an update to its full year outlook and providing an outlook for the third quarter to include the impact from the Galvanize Inc. acquisition, inclusive of the impact of purchase price accounting.
Updated outlook for the full year, fiscal 2020:
- Revenue in the range of $1,033.0 million to $1,040.0 million.
- Capital expenditures of $45.0 million to $49.0 million. Note: Capital expenditures include the purchase of property and equipment, and capitalized software and curriculum development costs as defined on our Statement of Cash Flows.
- Tax rate of 28.0% to 30.0%.
- Adjusted operating income in the range of $48.0 million to $52.0 million. The reduction in guidance for adjusted operating income is largely due to purchase price accounting adjustments relating to the Galvanize Inc. acquisition. (3)
- Excluding the impact of this acquisition, the company was on pace to achieve revenue and adjusted operating income within the original outlook range.
The company is providing the following outlook for the third quarter, fiscal 2020:
- Revenue in the range of $252.0 million to $255.0 million.
- Capital expenditures of $8.0 million to $10.0 million.
- Adjusted operating income in the range of $18.0 million to $20.0 million. (3)
For earnings history and earnings-related data on K12, Inc. (LRN) click here.