Education Management (Nasdaq: EDMC) reported earnings on Feb. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), 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 significantly.

Margins shrank across the board.

Revenue details
Education Management reported revenue of $654.9 million. The 12 analysts polled by S&P Capital IQ expected to see revenue of $650.6 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $737.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.25. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.19 per share. GAAP EPS of $0.25 for Q2 were 49% lower than the prior-year quarter's $0.49 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 45.0%, 400 basis points worse than the prior-year quarter. Operating margin was 12.8%, 490 basis points worse than the prior-year quarter. Net margin was 4.8%, 380 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $630.7 million. On the bottom line, the average EPS estimate is $0.20.

Next year's average estimate for revenue is $2.47 billion. The average EPS estimate is $0.42.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 31 members out of 61 rating the stock outperform, and 30 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give Education Management a green thumbs-up, and 13 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 $4.22.

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