Strayer Education (STRA) Earnings Meet Expectations in Q1
Strayer Education Inc. STRA reported first-quarter 2017 earnings of 95 cents per share, in line with the Zacks Consensus Estimate. Also, earnings decreased 17.4% year over year.
Revenues increased 3.3% to $114.9 million, primarily buoyed by higher enrollment which was partly offset by a 3% decline in revenue per student.
Enrollment Details
Total enrollment at Strayer University increased 6% to 43,387 students from 40,872 in the prior-year quarter. Enrollment was flat sequentially. New student enrollments rose 8% and continuing student enrollments increased 6%.
Operating Results
Operating margin decreased 210 basis points (bps) to 16%. Bad debt expenses, as a percentage of revenues, were 3.8% in the first quarter, reflecting a year-over-year increase of 100 bps.
Strayer Education, Inc. Price, Consensus and EPS Surprise
Strayer Education, Inc. Price, Consensus and EPS Surprise | Strayer Education, Inc. Quote
Financial Details
Strayer Education ended the quarter with cash and cash equivalents of $147.1 million, as of Mar 31, 2017, compared with $14.7 million as of Mar 31, 2016.
The company generated $25.1 million in cash from operating activities in the quarter, compared with $14.7 million in the year-ago quarter. Capital expenditures totaled $3.8 million, compared with $2 million in the prior-year quarter.
The company had a $70 million worth of share repurchase authorization as of Mar 31, 2017. Notably, no shares were bought back in the first quarter of 2017.
Second Quarter Guidance
Total enrollments at Strayer University are expected to grow 6% from the prior-year quarter.
New student enrollments are anticipated to increase around 8%.
Continuing student enrollments are expected to rise approximately 5%.
Revenue per student is likely to decline between 1% and 2% in the quarter.
Zacks Rank & Peer Release
Strayer Education currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Capella Education Company CPLA reported adjusted earnings of 94 cents in the first quarter of 2017, which surpassed the Zacks Consensus Estimate of 87 cents by 8.1%. Adjusted earnings however decreased 9.3% year over year.
Upcoming Peer Releases
Laureate Education Inc. LAUR is slated to release its first-quarter 2017 results on May 11, before market opens.
American Public Education, Inc. APEI is scheduled to report its first-quarter 2017 results on May 9, after market close.
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American Public Education, Inc. (APEI): Free Stock Analysis Report
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