Benzinga | Nov 3, 2021 10:56AM EDT

Why Chegg Shares Are Rising

Chegg Inc (NYSE:CHGG) shares are trading higher amid a slight rebound after the stock fell sharply on Monday following worse-than-expected third-quarter sales and soft guidance.

Chegg reported quarterly sales of $171.90 million which missed the analyst consensus estimate of $174.54 million by 1.5%. This is a 12% percent increase over sales of $154.02 million the same period last year.

"Over the last year and a half, we experienced extraordinary growth and, in midst of a strong year, had a solid third quarter, growing Chegg Services revenue 23% year-over-year. However, in late September it became clear to us that the education industry is experiencing a slowdown that we believe is temporary and is a direct result of the COVID-19 pandemic," said Dan Rosensweig, CEO and President of Chegg.

"Despite these trends, our team continues to execute at a high level. Chegg is in an excellent position to come out of this stronger than ever and take advantage of the opportunities before us," Rosensweig stated.

Chegg has a 52-week high of $115.21 and a 52-week low of $31.97.