Sunlands Q2 Revenue Plunges 25%, Guides Q3 Down 33-37%
STG sits 28% above its 52-week low of $2.435.
Summary
Sunlands reported Q2 revenue of RMB406.4 million, down 25% year-over-year, driven by a sharp drop in new student enrollments to 95,280 from 159,154. Net income fell to RMB83.5 million. The company guided Q3 revenue to RMB330-350 million, implying a 33.1%-36.9% year-over-year decline, citing weak market conditions and customer demand. This follows the $50 million buyback announced in May, of which only $2.3 million has been repurchased to date. The enrollment collapse and deteriorating guidance suggest the core business is shrinking rapidly despite cost management supporting profitability.
At the time of this announcement, STG was trading at $3.12 on NYSE in the Trade & Services sector, with a market capitalization of approximately $41.5M. The 52-week trading range was $2.44 to $11.53. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.