The 10-second takeaway
For the quarter ended March 31 (Q1), Strayer Education met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share dropped significantly.
Margins contracted across the board.
Strayer Education booked revenue of $137.5 million. The 11 analysts polled by S&P Capital IQ wanted to see revenue of $139.6 million on the same basis. GAAP reported sales were 8.0% lower than the prior-year quarter's $149.5 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 $1.59. The 10 earnings estimates compiled by S&P Capital IQ forecast $1.46 per share. GAAP EPS of $1.59 for Q1 were 24% lower than the prior-year quarter's $2.09 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 46.6%, 410 basis points worse than the prior-year quarter. Operating margin was 21.8%, 550 basis points worse than the prior-year quarter. Net margin was 12.5%, 350 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $133.2 million. On the bottom line, the average EPS estimate is $1.37.
Next year's average estimate for revenue is $513.7 million. The average EPS estimate is $4.11.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 251 members out of 318 rating the stock outperform, and 67 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give Strayer Education a green thumbs-up, and 16 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 $52.60.
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