Duolingo, Inc.

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Slightly Bearish -20

Duolingo, Inc. (DUOL) Stock Dips While Market Gains: Key Facts - zacks.com

Earnings report Financial outlook AI-generated analysis

📉 DUOL shares closed down 2.8% at $143.61, underperforming the S&P 500 and Nasdaq during a market gain session.

📅 Analysts expect quarterly EPS of $0.55, representing a sharp 42.11% decline from the prior-year quarter.

💰 Revenue is forecast to reach $303.53 million, showing an 11.71% increase compared to the year-ago quarter.

📊 Full-year consensus estimates project earnings of $2.62 per share and revenue of $1.21 billion.

📉 The full-year outlook indicates a massive 69.43% year-over-year decline in expected earnings per share.

💵 DUOL trades at a Forward P/E ratio of 56.5, significantly higher than the industry average of 17.31.

📈 The company's PEG ratio is 1.21, which is nearly identical to the Technology Services industry average of 1.22.

🏆 Zacks Equity Research assigns a Zacks Rank of #3 (Hold) based on recent estimate revisions.

📉 Consensus EPS estimates have shifted 0.57% downward recently, correlating with the stock's price dip.

🏭 The Technology Services industry containing DUOL is ranked in the bottom 36% of all 250+ industries.

Bullish Signals
  • Revenue is expected to grow by 11.71% in the current quarter compared to the year-ago period.
  • Full-year revenue growth is projected at 16.39%, indicating continued top-line expansion despite earnings compression.
Risk Factors
  • Analysts expect quarterly EPS to fall by 42.11% compared to the prior-year quarter.
  • The stock trades at a Forward P/E of 56.5, which is more than three times the industry average of 17.31.
Full Analysis
Duolingo, Inc. (DUOL) shares closed at $143.61, marking a 2.8% decline that lagged the broader market gains seen in the S&P 500 and Nasdaq during the latest trading session. Despite this short-term dip, the stock had previously gained 3.42% over the past month, outperforming the Business Services sector which saw losses. Analysts are closely monitoring Duolingo ahead of its upcoming earnings report, with consensus estimates projecting EPS of $0.55 and revenue of $303.53 million for the current quarter. These figures represent a significant 42.11% decline in expected earnings per share compared to the prior-year quarter, though revenue is forecast to increase by 11.71%. Full-year consensus estimates anticipate earnings of $2.62 per share and revenue of $1.21 billion, indicating a projected year-over-year earnings contraction of nearly 70% alongside revenue growth of roughly 16%. The company currently trades at a Forward P/E ratio of 56.5, which is substantially higher than the industry average of 17.31. Zacks Equity Research maintains a Zacks Rank of #3 (Hold) for Duolingo, noting that recent downward shifts in consensus EPS estimates align with the stock's price movement. The company's PEG ratio stands at 1.21, closely mirroring the Technology Services industry average, while the broader industry group ranks in the bottom 36% of all sectors.