The 10-second takeaway
For the quarter ended June 30 (Q2), Strayer Education met expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.
Margins contracted across the board.
Strayer Education chalked up revenue of $146.3 million. The 14 analysts polled by S&P Capital IQ wanted to see a top line of $147.7 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $163.8 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 $1.85. The 14 earnings estimates compiled by S&P Capital IQ forecast $1.86 per share. GAAP EPS of $1.85 for Q2 were 27% lower than the prior-year quarter's $2.53 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 48.3%, 510 basis points worse than the prior-year quarter. Operating margin was 24.7%, 590 basis points worse than the prior-year quarter. Net margin was 14.5%, 360 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $128.9 million. On the bottom line, the average EPS estimate is $0.88.
Next year's average estimate for revenue is $579.0 million. The average EPS estimate is $6.89.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 260 members out of 327 rating the stock outperform, and 67 members rating it underperform. Among 87 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 67 give Strayer Education a green thumbs-up, and 20 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 $110.83.
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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 the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. 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.