The 10-second takeaway
For the quarter ended March 31 (Q1), Bridgepoint Education met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Bridgepoint Education notched revenue of $250.4 million. The nine analysts polled by S&P Capital IQ foresaw sales of $251.3 million on the same basis. GAAP reported sales were 9.2% higher than the prior-year quarter's $229.4 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 $0.71. The nine earnings estimates compiled by S&P Capital IQ predicted $0.75 per share. GAAP EPS of $0.59 for Q1 were 36% lower than the prior-year quarter's $0.92 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 72.7%, 300 basis points worse than the prior-year quarter. Operating margin was 20.9%, 1,660 basis points worse than the prior-year quarter. Net margin was 13.2%, 1,030 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $258.7 million. On the bottom line, the average EPS estimate is $0.74.
Next year's average estimate for revenue is $1.02 billion. The average EPS estimate is $2.58.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Bridgepoint Education is outperform, with an average price target of $30.30.
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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. The Motley Fool owns shares of Bridgepoint Education. Motley Fool newsletter services have recommended writing puts on Bridgepoint Education. 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.