K12 Inc. (LRN), a for-profit education company, stock is up over 6% year-to-date and plans to release their most recent earnings on October 23, 2018.The company will release their earnings after the bell for the Q1 2019 fiscal year.
The company will also be holding a conference call immediately after releasing their earnings. The call will be broadcast live and will be available through November 23.
Analysts expect K12 to post a decline in earnings year-over-year on lower revenue for the period ended September 2018.Estimates have the company posting a quarterly loss of $0.33 per share, or a decline of 57.1% year-over-year.
Revenue is expected to come in 0.5% lower than a year prior at $227.64 million.
The company has been under pressure in recent months to be more accountable with their virtual schools. The company has suffered from low attendance in recent years although the company serves 110,000 students across 31 states. Taxpayers pay for the company to allow students to take their classes online, offering everything from mathematics to essay writing.
K12 has spent the better part of the year reshaping their image and transitioning to a company that offers the utmost in transparency. “Aggressive engagement” is being provided, allowing the company to track both teacher and student performance. The engagement tracking platform holds both parties accountable, ensuring that students are logging into the platform.
The company notes that 89% of students that use the platform are not on grade level when they enter into the K12 platform, so the students have a long way to catch up with their peers.
K12 has also started to incorporate an onboarding process that will educate parents and students on what is important when attending online classes. The process will explain what is expected of the students and their parents so that they can leverage the K12 platform.
Parents that enroll their students in K12 are doing so primarily because their children have been bullied, and when there are school shootings or other safety concerns, the program experiences an uptick in enrollment. Betsy DeVos has also lent her support to virtual schools, but K12 notes that her backing of virtual schools has done little to change the program’s enrollment figures.
A surprise in earnings will push K12’s stock higher, but the census is that the company will post a major loss year-over-year as the company attempts to boost transparency and encourage further engagement of students.