Chegg Sinks As First-quarter Revenue Outlook Disappoints

By Sue ChangMarketWatch Pulse

Shares of Chegg Inc. skidded in Monday's extended session after the online textbook vendor issued a disappointing revenue outlook for the current quarter. Chegg reported its fourth-quarter earnings rose to $3.63 million, or 4 cents a share, from $1.69 million, or 2 cents a share, a year earlier. Revenue fell to $68.2 million, compared with $72.1 million projected by analysts in a FactSet survey. For the full year, the company reported a loss of $59.2 million on revenue of $301.4 million. For the first quarter, Chegg forecast revenue in a range of $60 million and $65 million, below analysts' estimate of $75.2 million. Chegg slumped more than 23% in after-hours trading.

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