The 10-second takeaway
For the quarter ended June 30 (Q2), Bridgepoint Education missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share shrank.
Gross margins expanded, operating margins shrank, and net margins contracted.
Bridgepoint Education reported revenue of $256.3 million. The 11 analysts polled by S&P Capital IQ hoped for sales of $260.9 million on the same basis. GAAP reported sales were 6.8% higher than the prior-year quarter's $239.9 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 $0.84. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.74 per share. GAAP EPS of $0.84 for Q2 were 6.7% lower than the prior-year quarter's $0.90 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 74.5%, 40 basis points better than the prior-year quarter. Operating margin was 29.5%, 490 basis points worse than the prior-year quarter. Net margin was 18.5%, 320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $257.7 million. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $990.4 million. The average EPS estimate is $2.52.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Bridgepoint Education is hold, with an average price target of $28.60.
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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. The Motley Fool has a disclosure policy.
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