The 10-second takeaway
For the quarter ended June 30 (Q4), Education Management met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Education Management reported revenue of $639.2 million. The 12 analysts polled by S&P Capital IQ anticipated a top line of $643.3 million on the same basis. GAAP reported sales were 8.1% lower than the prior-year quarter's $695.4 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 $0.10. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.08 per share. GAAP EPS were -$9.52 for Q4 against $0.26 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.0%, 5,240 basis points worse than the prior-year quarter. Operating margin was 7.5%, 610 basis points worse than the prior-year quarter. Net margin was -186.0%, 19,100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $614.0 million. On the bottom line, the average EPS estimate is -$0.08.
Next year's average estimate for revenue is $2.54 billion. The average EPS estimate is $0.45.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 36 members out of 66 rating the stock outperform, and 30 members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give Education Management a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Education Management is hold, with an average price target of $12.67.
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