Strayer Education Inc. (NASDAQ:STRA) reported third-quarter 2016 adjusted earnings of 25 cents per share, which beat the Zacks Consensus Estimate of 21 cents by 19%. However, adjusted earnings decreased 21.9% year over year.
Revenues increased 3% to $102.2 million from $99.1 million a year ago, primarily buoyed by increased enrollment which was however partly offset by lower revenue per student.
Enrollment Details
Total enrollment at Strayer University for the fall term 2016 increased 6% to 45,509 students compared with 42,975 students for the fall term 2015. New student enrollments rose by 13% and continuing student enrollments increased by 4%.
STRAYER EDUC Price, Consensus and EPS Surprise
Operating Results
Adjusted operating margin decreased 240 basis points (bps) to 4.5%, primarily due to accelerated investments in New York Code and Design Academy expansion, academic program enhancements, and brand awareness initiatives. Bad debt expenses, as a percentage of revenues, were 3.8% in the third quarter, reflecting a year-over-year increase of 150 bps owing to a one time true-up.
Financial Details
Strayer Education ended the quarter with cash and cash equivalents of $120.5 million, as of Sep 30, 2016, compared with $106.8 million as of Dec 31, 2015.
The company generated $30.1 million in cash from operating activities in the first nine months of 2016 compared with $54.5 million a year ago. Capital expenditures totaled $7.5 million for the nine months ended Sep 30, 2016, compared with $9.6 million for the same period in 2015.
The company had a $70 million worth of share repurchase authorization remaining as of Sep 30, 2016. Notably, no shares were repurchased in the third quarter of 2016.
Strayer Education currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Upcoming Peer Releases
DeVry Education Group Inc. (NYSE:DV) is slated to release third-quarter results on Nov 1. The Zacks Consensus Estimate for earnings is pegged at 62 cents.
American Public Education, Inc. (NASDAQ:APEI) is scheduled to report third-quarter results on Nov 7. The Zacks Consensus Estimate for earnings is pegged at 31 cents.
Universal Technical Institute, Inc. (NYSE:UTI) is expected to release third-quarter numbers on Dec 6. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 29 cents.
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AMER PUB EDUCAT (APEI): Free Stock Analysis Report
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UNIVL TECH INST (UTI): Free Stock Analysis Report
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