The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Strayer Education met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.
Margins shrank across the board.
Strayer Education booked revenue of $155.8 million. The 14 analysts polled by S&P Capital IQ anticipated revenue of $154.8 million on the same basis. GAAP reported sales were 9.4% 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 came in at $2.30. The 13 earnings estimates compiled by S&P Capital IQ anticipated $2.26 per share. GAAP EPS of $2.30 for Q4 were 16% lower than the prior-year quarter's $2.73 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 53.5%, 1,330 basis points worse than the prior-year quarter. Operating margin was 29.1%, 520 basis points worse than the prior-year quarter. Net margin was 17.1%, 380 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $150.6 million. On the bottom line, the average EPS estimate is $2.09.
Next year's average estimate for revenue is $576.9 million. The average EPS estimate is $6.69.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 260 members out of 322 rating the stock outperform, and 62 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 give Strayer Education a green thumbs-up, and 16 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 $107.08.
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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 here. He is 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 may not 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.