Grand Canyon Education
The 10-second takeaway
For the quarter ended June 30 (Q2), Grand Canyon Education beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share increased significantly.
Margins grew across the board.
Grand Canyon Education logged revenue of $141.5 million. The 10 analysts polled by S&P Capital IQ looked for sales of $138.4 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $119.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.45. The eight earnings estimates compiled by S&P Capital IQ predicted $0.40 per share. Non-GAAP EPS of $0.45 for Q2 were 15% higher than the prior-year quarter's $0.39 per share. GAAP EPS of $0.42 for Q2 were 20% higher than the prior-year quarter's $0.35 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 56.4%, 120 basis points better than the prior-year quarter. Operating margin was 22.3%, 100 basis points better than the prior-year quarter. Net margin was 13.5%, 40 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $147.9 million. On the bottom line, the average EPS estimate is $0.44.
Next year's average estimate for revenue is $589.2 million. The average EPS estimate is $1.79.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 55 members out of 80 rating the stock outperform, and 25 members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give Grand Canyon Education a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Grand Canyon Education is outperform, with an average price target of $33.25.
Looking for alternatives to Grand Canyon Education? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Grand Canyon Education to My Watchlist.
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. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.