Strayer Education Hits Estimates, but GAAP Results Lag Last Year's

Strayer Education (Nasdaq: STRA  ) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Strayer Education met expectations on revenues and met expectations on earnings per share.

Compared with the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
Strayer Education logged revenue of $149.5 million. The 12 analysts polled by S&P Capital IQ predicted revenue of $150.1 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $172.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $2.09. The 11 earnings estimates compiled by S&P Capital IQ forecast $2.09 per share. GAAP EPS of $2.09 for Q1 were 25% lower than the prior-year quarter's $2.80 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 50.7%, 570 basis points worse than the prior-year quarter. Operating margin was 27.3%, 710 basis points worse than the prior-year quarter. Net margin was 16.0%, 480 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $146.1 million. On the bottom line, the average EPS estimate is $1.85.

Next year's average estimate for revenue is $575.1 million. The average EPS estimate is $6.81.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 263 members out of 328 rating the stock outperform, and 65 members rating it underperform. Among 93 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 give Strayer Education a green thumbs-up, and 18 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Strayer Education is hold, with an average price target of $110.17.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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