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.
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 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.
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.
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.
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.
Over the decades, small-cap stocks like Strayer Education have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Get instant access to this free report.
- Add Strayer Education to My Watchlist.
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.