Perdoceo beats Q2 revenue expectations, raises dividend
Overview
Perdoceo Q2 revenue rises 25.7% yr/yr, beating analysts' expectations
Adjusted EPS for Q2 beats consensus, reaching $0.67
Co announces 15.4% dividend increase and $75 mln share buyback
Outlook
Perdoceo expects Q3 operating income between $46.8M and $48.8M
Company projects full-year operating income of $187.8M to $193.8M
Perdoceo forecasts Q3 adjusted EPS of $0.60 to $0.62
Company anticipates full-year adjusted EPS of $2.48 to $2.55
Result Drivers
STUDENT ENROLLMENT - Total student enrollments rose 17.4%, driven by increases at CTU and AIUS, and the acquisition of St. Augustine
REVENUE GROWTH - Revenue increased 25.7% to $209.6 mln, attributed to higher enrollments and acquisition impact
RETENTION AND ENGAGEMENT - Student retention and engagement at multi-year highs, supporting financial performance, per CEO Todd Nelson
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $209.60 mln | $206.90 mln (1 Analyst) |
Q2 Adjusted EPS | Beat | $0.67 | $0.65 (1 Analyst) |
Q2 EPS |
| $0.62 |
|
Q2 Net Income |
| $41 mln |
|
Q2 Adjusted Operating Income |
| $61.50 mln |
|
Q2 Capex |
| $2.75 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "strong buy"
The average consensus recommendation for the miscellaneous educational service providers peer group is "buy."
Wall Street's median 12-month price target for Perdoceo Education Corp is $40.00, about 28.4% above its July 30 closing price of $28.65
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago
Press Release: ID:nBw9YCmdQa
