Shares of K12 were advancing 10.5% in pre-market trading today as the online education services provider beat analysts’ expectations for the first quarter of fiscal 2021, ended Sept. 30.K12’s (LRN) 1Q FY21 revenue increased 44.3% year-over-year to $371 million, surpassing analysts’ forecast of $362.6 million. The top-line benefited from a 57% rise in enrolment to over 195,000 as the demand for online learning has surged since the COVID-19 outbreak. Yesterday, K12’s rival Chegg (CHGG) reported revenue of $154 million, reflecting Y/Y growth of 64% for the third quarter ended Sept. 30.Meanwhile, K12’s adjusted EBITDA jumped significantly to $39.2 million in 1Q FY21 from $3.3 million in 1Q FY20. Strong revenue growth and improved operating leverage helped the company in delivering EPS of $0.30 in 1Q FY21 compared to a net loss per share of $0.25 in 1Q FY20. Analysts were expecting a loss per share of $0.32.Based on strong demand, the company expects 2Q FY21 revenue between $358 million to $366 million and FY21 revenue between $1.445 billion and $1.470 billion.Last month, William Blair analyst Stephen Sheldon reiterated a Buy rating for K12 and stated that the selloff in K12 shares following the loss of the Miami-Dade institutional business contract was overblown. He feels that the announcement is a “small incremental negative to the story,” but not one that justifies the extent of the decline in the shares following the news.Sheldon also noted that the Miami-Dade contract has nothing to do with K12's core business and that the $15 million transaction would only have accounted for about 1% of current forward revenue estimates. Moreover, there were also meaningful costs in the first year that could limit profitability, said the analyst. (See LRN stock analysis on TipRanks)Overall, the Street has a Strong Buy consensus for K12 based on 4 unanimous Buys. Shares have risen 39% so far this year and the average analyst price target of $55 indicates significant upside potential of 95% for the months ahead.Related News: Chegg Sinks 5% After-Hours Despite Stellar 3Q Earnings F5 Networks’ 1Q Outlook Beats The Street; Shares Gain 4.3% SAP Slashes 2020 Guidance As Covid-19 Surge Slows Recovery More recent articles from Smarter Analyst: * J.M. Smucker Inks $550M Deal With B&G; Foods To Divest Crisco Business * Crane Posts 3Q Profit Win; Street See 31% Upside * AMD Seals $35B Deal To Buy Chip Rival Xilinx; Shares Drop * Moelis Hikes Quarterly Dividend By 50%; Shares Rise In Pre-Market

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K12 (LRN) delivered earnings and revenue surprises of 188.24% and 1.64%, respectively, for the quarter ended September 2020. Do the numbers hold clues to what lies ahead for the stock?

The two online-education companies' results topped Wall Street expectations Monday, showing growth as distance-learning initiatives have endured in many places for more than half a year, but their after-hours share performance diverged.

Shares of K12 (NYSE:LRN) moved higher by 10.5% in after-market trading after the company reported Q1 results.Quarterly Results Earnings per share were up 220.00% year over year to $0.30, which beat the estimate of ($0.31).Revenue of $370,960,000 higher by 44.27% year over year, which beat the estimate of $362,520,000.Looking Ahead Earnings guidance hasn't been issued by the company for now.Revenue guidance hasn't been issued by the company for now.How To Listen To The Conference Call Date: Oct 26, 2020View more earnings on LRNTime: 05:00 PMET Webcast URL: https://event.on24.com/eventRegistration/EventLobbyServlet?target=reg20.jsp&referrer=https%3A%2F%2Fpro.benzinga.com%2F&eventid=2709958&sessionid=1&key=5FF36D23A41009F92F6042C4EA5C19B6&regTag=&sourcepage=registerPrice Action 52-week high: $52.8452-week low: $15.06Price action over last quarter: down 30.99%Company Overview K12 Inc is an American online educational company. The company offers alternative programs to traditional on-campus schooling. K12 also operates state-funded virtual charter schools around the United States. The educational programs for K-12 students are usually monitored by parents and provide virtual classroom environments where teachers meet with students online, by phone, or in-person. The company's contractual agreements with various school districts to offer its curriculum programs provide a majority of the company's revenue. The company lines of business are Managed Public School Programs, Institutional, and Private Pay Schools and Other.See more from Benzinga * Click here for options trades from Benzinga * Earnings Scheduled For October 26, 2020(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.