K12 (LRN) Misses Q3 Earnings Estimates

Company Performance - K12 reported quarterly earnings of $2.02 per share, missing the Zacks Consensus Estimate of $2.09 per share, but showing an increase from $1.60 per share a year ago, representing an earnings surprise of -3.35% [1] - The company posted revenues of $613.38 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.31%, compared to year-ago revenues of $520.84 million [2] - Over the last four quarters, K12 has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - K12 shares have increased approximately 35.5% since the beginning of the year, contrasting with a -6% decline in the S&P 500 [3] - The current consensus EPS estimate for the coming quarter is $1.71 on revenues of $610.89 million, and for the current fiscal year, it is $6.96 on revenues of $2.34 billion [7] Industry Outlook - The Schools industry, to which K12 belongs, is currently in the top 20% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that K12's stock may outperform the market in the near future [5][6]