Grand Canyon Education
The 10-second takeaway
For the quarter ended March 31 (Q1), Grand Canyon Education beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.
Margins grew across the board.
Grand Canyon Education booked revenue of $117.1 million. The 10 analysts polled by S&P Capital IQ expected revenue of $113.4 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $101.7 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 $0.32. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.26 per share. GAAP EPS of $0.32 for Q1 were 52% higher than the prior-year quarter's $0.21 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 56.6%, 470 basis points better than the prior-year quarter. Operating margin was 20.7%, 480 basis points better than the prior-year quarter. Net margin was 12.4%, 310 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $114.3 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $481.7 million. The average EPS estimate is $1.28.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 43 members out of 65 rating the stock outperform, and 22 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give Grand Canyon Education a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Grand Canyon Education is buy, with an average price target of $21.33.
Over the decades, small-cap stocks like Grand Canyon 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." Click here for instant access to this free report.
- Add Grand Canyon Education to My Watchlist.