Q4 Earnings Highlights: Perdoceo Education (NASDAQ:PRDO) Vs The Rest Of The Education Services Stocks
The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s take a look at how Perdoceo Education (NASDAQ:PRDO) and the rest of the education services stocks fared in Q4.
A whole industry has emerged to address the problem of rising education costs, offering consumers alternatives to traditional education paths such as four-year colleges. These alternative paths, which may include online courses or flexible schedules, make education more accessible to those with work or child-rearing obligations. However, some have run into issues around the value of the degrees and certifications they provide and whether customers are getting a good deal. Those who don’t prove their value could struggle to retain students, or even worse, invite the heavy hand of regulation.
The 6 education services stocks we track reported a very strong Q4; on average, revenues beat analyst consensus estimates by 3.1% while next quarter's revenue guidance was 2% above consensus. Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, but education services stocks held their ground better than others, with the share prices up 7.3% on average since the previous earnings results.
Perdoceo Education (NASDAQ:PRDO)
Formerly known as Career Education Corporation, Perdoceo Education (NASDAQ:PRDO) is an educational services company that specializes in postsecondary education.
Perdoceo Education reported revenues of $147.9 million, down 16% year on year, topping analyst expectations by 1.2%. It was an impressive quarter for the company, with a decent beat of analysts' earnings estimates.
Perdoceo Education delivered the slowest revenue growth of the whole group. The stock is up 4.5% since the results and currently trades at $17.75.
Is now the time to buy Perdoceo Education? Access our full analysis of the earnings results here, it's free.
Best Q4: Universal Technical Institute (NYSE:UTI)
Founded in 1965, Universal Technical Institute (NYSE: UTI) is a leading provider of technical training programs, specializing in automotive, diesel, collision repair, motorcycle, and marine technicians.
Universal Technical Institute reported revenues of $174.7 million, up 45.6% year on year, outperforming analyst expectations by 3.8%. It was an exceptional quarter for the company, with key line items coming in ahead of Wall Street analysts' expectations. The company also raised full year guidance for revenue, adjusted EBITDA, and adjusted EPS.
Universal Technical Institute achieved the fastest revenue growth among its peers. The stock is up 3.3% since the results and currently trades at $15.18.
Is now the time to buy Universal Technical Institute? Access our full analysis of the earnings results here, it's free.
Weakest Q4: Grand Canyon Education (NASDAQ:LOPE)
Founded in 1949, Grand Canyon Education (NASDAQ:LOPE) is an educational services provider known for its operation at Grand Canyon University.
Grand Canyon Education reported revenues of $278.3 million, up 7.6% year on year, exceeding analyst expectations by 1.1%. It was a decent quarter for the company, with revenue guidance for next quarter and full year beating analysts' expectations.
Grand Canyon Education had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The stock is up 2.6% since the results and currently trades at $133.84.
Read our full analysis of Grand Canyon Education's results here.
Bright Horizons (NYSE:BFAM)
Founded in 1986, Bright Horizons (NYSE:BFAM) is a global provider of child care, early education, and workforce support solutions.
Bright Horizons reported revenues of $615.6 million, up 16.3% year on year, surpassing analyst expectations by 4.1%. It was a solid quarter for the company, with full-year revenue guidance exceeding analysts' expectations.
The stock is up 17.7% since the results and currently trades at $112.83.
Read our full, actionable report on Bright Horizons here, it's free.
Strategic Education (NASDAQ:STRA)
Formed through the merger of Strayer Education and Capella Education in 2018, Strategic Education (NASDAQ:STRA) is a career-focused higher education provider.
Strategic Education reported revenues of $302.7 million, up 12.1% year on year, surpassing analyst expectations by 1.8%. It was an impressive quarter for the company, with a decent beat of analysts' revenue estimates and more convincing earnings beat.
The stock is up 9.2% since the results and currently trades at $103.96.
Read our full, actionable report on Strategic Education here, it's free.
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