PeopleImages/iStock via Getty Images Intro We wrote about Grand Canyon Education, Inc. (NASDAQ:LOPE) in December of last year when we turned bullish on the stock due to growing enrollment numbers against a supply shortage of qualified labor in the US. Although shares have gained just over 5% year to date, the long-term technical breakout we discussed in detail in our December 2023 commentary remains intact. Furthermore, the 200-day moving average (which is being tested at present), has provided solid suppor ...

Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Grand Canyon Education (LOPE) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out. Grand Canyon Education is a member of the Consumer Discretionary sector. This group includes 280 individual stocks and currently holds ...

Grand Canyon Education (LOPE) came out with quarterly earnings of $1.27 per share, beating the Zacks Consensus Estimate of $1.09 per share. This compares to earnings of $1.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 16.51%. A quarter ago, it was expected that this forprofit education company would post earnings of $2.22 per share when it actually produced earnings of $2.35, delivering a surprise of 5.86%. Over the last ...

PHOENIX, July 9, 2024 /PRNewswire/ -- Grand Canyon Education, Inc. (Nasdaq: LOPE) announced today that it will report its 2024 second quarter results after market close on Tuesday, August 6, 2024. The Company will host a conference call to discuss the results in more detail at 1:30 P.M. (4:30 P.M. ET) the same day. Live Conference Dial-In: Those interested in participating in the question-and-answer session should follow the conference dial-in instructions below. Participants may register for the call here ...

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it. Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. - ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

Have you been paying attention to shares of Grand Canyon Education (LOPE) ? Shares have been on the move with the stock up 11.1% over the past month. The stock hit a new 52-week high of $156.56 in the previous session. Grand Canyon Education has gained 11.4% since the start of the year compared to the -3% move for the Zacks Consumer Discretionary sector and the 9% return for the Zacks Schools industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it ...

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock aliv ...

Grand Canyon Education (LOPE) came out with quarterly earnings of $2.35 per share, beating the Zacks Consensus Estimate of $2.22 per share. This compares to earnings of $2 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.86%. A quarter ago, it was expected that this for-profit education company would post earnings of $2.72 per share when it actually produced earnings of $2.77, delivering a surprise of 1.84%.Over the last four ...

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Grand Canyon Education, Inc. reported strong Q1 2024 financial performance, with increased revenue and net income, and growing assets, primarily from its GCU partnership Consolidated Income Statement Highlights (Q1 2024 vs Q1 2023, in millions) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Service Revenue | $274.7 | $250.1 | +9.8% | | Operating Income | $84.5 | $74.5 | +13.4% | | Net Income | $68.0 | $59.6 | +14.2% | | Diluted EPS | $2.29 | $1.94 | +18.0% | Consolidated Balance Sheet Highlights (As of March 31, 2024, in millions) | Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $196.2 | $146.5 | | Total Assets | $1,035.6 | $930.5 | | Total Liabilities | $276.1 | $212.4 | | Total Stockholders' Equity | $759.4 | $718.0 | Consolidated Cash Flow Highlights (Q1 2024 vs Q1 2023, in millions) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $85.0 | $63.0 | | Net cash used in investing activities | $(5.3) | $(37.1) | | Net cash used in financing activities | $(30.0) | $(41.2) | - The company provides education services to **23 university partners** across the United States, with its most significant partner being Grand Canyon University (GCU)[22](index=22&type=chunk)[23](index=23&type=chunk) - Revenue is generated through long-term master services agreements with university partners, where GCE receives a percentage (**60% from GCU**) of the partner's tuition and fee revenue in exchange for providing technology, academic, counseling, marketing, and back-office services[29](index=29&type=chunk)[44](index=44&type=chunk) - Grand Canyon University (GCU) accounted for **89.7% of total service revenue** for the three months ended March 31, 2024, up from 88.5% in the same period in 2023, indicating a high concentration of credit risk[59](index=59&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2024 revenue growth to GCU enrollment and revenue per student increases, alongside rising operating expenses, strong liquidity, and share repurchases [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Q1 2024 service revenue grew 9.8% to **$274.7 million** from GCU enrollment and revenue per student increases, with rising operating expenses but an improved operating margin Enrollment Statistics (as of March 31) | Enrollment Category | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Partner Enrollments | 120,788 | 112,588 | +7.3% | | GCU Enrollments | 116,952 | 108,597 (derived) | +7.7% | | - GCU Online | 93,987 | 86,065 | +9.2% | | - GCU Ground | 22,965 | 22,568 | +1.8% | | Off-Campus Site Enrollments | 4,486 | 4,313 (derived) | +4.0% | - The increase in revenue per student was positively impacted by higher room, board, and ancillary revenues at GCU, a favorable academic calendar shift adding **$2.1 million**, and an extra day for the leap year adding **$1.5 million**[109](index=109&type=chunk) - Counseling services and support expenses increased by **13.0%** to **$82.9 million**, primarily due to a **$7.2 million** increase in employee compensation from higher headcount and a **$1.8 million** increase in travel costs[113](index=113&type=chunk) - Marketing and communication expenses increased by **4.6%** to **$55.4 million**, driven by a **$2.1 million** rise in advertising costs to market university partners' programs[114](index=114&type=chunk) - The effective tax rate increased to **22.9%** in Q1 2024 from **22.3%** in Q1 2023, primarily due to higher taxable income, despite larger excess tax benefits from share-based compensation[119](index=119&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity increased to **$290.7 million** in Q1 2024 from strong operating cash flow, with significant cash used for share repurchases and planned capital expenditures Cash Flow Summary (Three Months Ended March 31, in millions) | (in millions) | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $85.0 | $63.0 | | Net cash used in investing activities | $(5.3) | $(37.1) | | Net cash used in financing activities | $(30.0) | $(41.2) | - Capital expenditures were **$9.0 million** in Q1 2024, primarily for leasehold improvements and equipment for new off-campus sites. The company anticipates annual capital expenditures of **$30.0 to $40.0 million**[128](index=128&type=chunk) - The company used **$22.6 million** to repurchase **171,670 shares** of its common stock in Q1 2024. As of March 31, 2024, **$242.5 million** remained available under the share repurchase authorization, which expires March 1, 2025[131](index=131&type=chunk)[134](index=134&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company has limited market risk, primarily interest rate risk on its high-credit-quality investment portfolio, with no material impact from a 10% interest rate change - The company invests excess cash in money market instruments, corporate bonds, agency bonds, and commercial paper with a **minimum BBB rating** to limit credit risk[137](index=137&type=chunk) - As of March 31, 2024, a hypothetical **10% increase or decrease in interest rates** would not materially impact the company's future earnings, fair values, or cash flows[137](index=137&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed effective disclosure controls and procedures as of March 31, 2024, with no material changes to internal control over financial reporting in Q1 - The CEO and CFO concluded that the company's disclosure controls and procedures are effective as of March 31, 2024[138](index=138&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the first quarter of 2024[139](index=139&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=25&type=section&id=Item%201.%20Legal%20Proceedings) The company faces ongoing legal proceedings, including a resolved shareholder class action, a pending derivative suit, and an uncertain False Claims Act lawsuit - The securities class action (Shareholder Litigation) has been resolved via a settlement agreement, with the entire settlement amount to be funded by the company's insurance carriers[85](index=85&type=chunk) - A shareholder derivative lawsuit related to the class action allegations is pending, with the company filing a motion to dismiss in April 2024[86](index=86&type=chunk) - The company is defending a False Claims Act lawsuit alleging improper compensation for enrollment counselors. The outcome is uncertain, and no liability has been accrued as a range of loss cannot be reasonably estimated[87](index=87&type=chunk)[88](index=88&type=chunk) [Item 1A. Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's 2023 Annual Report on Form 10-K were reported - No material changes to the risk factors from the 2023 Form 10-K were reported[142](index=142&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=26&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2024, the company repurchased **171,670 shares** for **$22.5 million**, with **$242.5 million** remaining available under its share repurchase authorization Share Repurchases in Q1 2024 | Period | Total Shares Purchased (Program) | Average Price Paid Per Share | | :--- | :--- | :--- | | Jan 2024 | 38,553 | $126.15 | | Feb 2024 | 57,880 | $131.01 | | Mar 2024 | 75,237 | $133.94 | | **Total** | **171,670** | **$131.20** | - As of March 31, 2024, **$242.5 million** remained available under the company's share repurchase authorization[145](index=145&type=chunk) [Item 5. Other Information](index=26&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q1 2024 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement in Q1 2024[148](index=148&type=chunk) [Item 6. Exhibits](index=27&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO/CFO certifications and Inline XBRL financial statements