Perdoceo Education (PRDO)

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Perdoceo Education (PRDO) Is Up 23.72% in One Week: What You Should Know
ZACKS· 2025-05-07 17:00
Company Overview - Perdoceo Education (PRDO) currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for outperformance in the market [4] Price Performance - Over the past week, PRDO shares have increased by 23.72%, significantly outperforming the Zacks Schools industry, which rose by 4.51% [6] - In a longer time frame, PRDO's monthly price change is 22.1%, compared to the industry's 14.21% [6] - Over the last quarter, PRDO shares have gained 7.43%, and over the past year, they have increased by 27.51%, while the S&P 500 has moved -7.56% and 9.65%, respectively [7] Trading Volume - The average 20-day trading volume for PRDO is 550,019 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, one earnings estimate for PRDO has increased, while none have decreased, raising the consensus estimate from $2.41 to $2.49 [10] - For the next fiscal year, one estimate has also moved upwards with no downward revisions during the same period [10] Conclusion - Considering the strong price performance, positive earnings outlook, and favorable trading volume, PRDO is identified as a solid momentum pick with a Momentum Score of A and a Zacks Rank of 2 (Buy) [12]
PRDO or LINC: Which Is the Better Value Stock Right Now?
ZACKS· 2025-05-06 16:45
Core Insights - The article compares two education stocks, Perdoceo Education (PRDO) and Lincoln Educational Services Corporation (LINC), to determine which offers better value for investors [1]. Valuation Metrics - PRDO has a forward P/E ratio of 12.39, significantly lower than LINC's forward P/E of 28.87, indicating that PRDO may be undervalued [5]. - The PEG ratio for PRDO is 0.83, while LINC's PEG ratio is 1.92, suggesting that PRDO has a more favorable earnings growth outlook relative to its price [5]. - PRDO's P/B ratio is 2.08 compared to LINC's P/B of 3.22, further supporting the notion that PRDO is more attractively priced [6]. Analyst Outlook - PRDO currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while LINC has a Zacks Rank of 4 (Sell), reflecting a less favorable outlook [3]. - The improving earnings outlook for PRDO positions it as a superior value option in the current market [7].
Perdoceo Education Corporation (PRDO) Hits Fresh High: Is There Still Room to Run?
ZACKS· 2025-05-06 14:15
Shares of Perdoceo Education (PRDO) have been strong performers lately, with the stock up 21.9% over the past month. The stock hit a new 52-week high of $31.15 in the previous session. Perdoceo Education has gained 16.5% since the start of the year compared to the -1.9% move for the Zacks Consumer Discretionary sector and the 5.5% return for the Zacks Schools industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consen ...
Perdoceo Education (PRDO) Is a Great Choice for 'Trend' Investors, Here's Why
ZACKS· 2025-05-06 13:50
Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for successful short-term investing, highlighting the use of a specific screening strategy to identify stocks with strong fundamentals and positive price momentum. Group 1: Investment Strategy - The trend is a crucial factor in short-term investing, but ensuring its sustainability is challenging [1] - Investors should confirm sound fundamentals and positive earnings estimate revisions to maintain stock momentum [2] - A "Recent Price Strength" screen helps identify stocks with sufficient fundamental strength to sustain their uptrend [3] Group 2: Company Analysis - Perdoceo Education (PRDO) - PRDO has shown a solid price increase of 8.4% over the past 12 weeks, indicating investor confidence [4] - The stock has increased by 21.9% in the last four weeks, suggesting the trend remains strong [5] - PRDO is trading at 98.9% of its 52-week high-low range, indicating a potential breakout [5] Group 3: Fundamental Strength - PRDO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6] - The Zacks Rank system has a strong track record, with Rank 1 stocks averaging a +25% annual return since 1988 [7] - The Average Broker Recommendation for PRDO is 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7] Group 4: Additional Opportunities - Besides PRDO, there are other stocks that meet the criteria of the "Recent Price Strength" screen, suggesting further investment opportunities [8] - The article encourages exploring over 45 Zacks Premium Screens tailored to different investing styles for potential stock picks [8]
Perdoceo Education (PRDO) Surpasses Q1 Earnings and Revenue Estimates
ZACKS· 2025-05-01 22:20
Core Viewpoint - Perdoceo Education (PRDO) reported quarterly earnings of $0.70 per share, exceeding the Zacks Consensus Estimate of $0.66 per share, and showing an increase from $0.60 per share a year ago, indicating a positive earnings surprise of 6.06% [1][2] Financial Performance - The company achieved revenues of $213 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.42%, and up from $168.26 million in the same quarter last year [2] - Over the last four quarters, Perdoceo Education has consistently exceeded consensus EPS estimates and revenue estimates [2] Market Performance - Perdoceo Education shares have declined approximately 5.1% since the beginning of the year, slightly better than the S&P 500's decline of 5.3% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.62 for the upcoming quarter and $2.41 for the current fiscal year, with revenues expected to be $205.09 million and $823.06 million respectively [7] - The Zacks Rank for Perdoceo Education is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Schools industry, to which Perdoceo Education belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable environment for performance [8]
Perdoceo Education (PRDO) - 2025 Q1 - Earnings Call Transcript
2025-05-01 22:02
Perdoceo Education (PRDO) Q1 2025 Earnings Call May 01, 2025 05:00 PM ET Company Participants Todd Nelson - President & CEOAshish Ghia - Senior VP & CFO Conference Call Participants Nick Nelson - Senior Analyst Operator Hello, and welcome to the Perdocayo Education Corporation First Quarter twenty twenty five Earnings Conference Call. Now I would like to hand the call over to Nick Nelson from Alpha IR. Nick, you may begin. Nick Nelson Thank you, operator. Good afternoon, everyone, and thank you for joining ...
Perdoceo Education (PRDO) - 2025 Q1 - Earnings Call Transcript
2025-05-01 22:02
Perdoceo Education (PRDO) Q1 2025 Earnings Call May 01, 2025 05:00 PM ET Company Participants Todd Nelson - President & CEOAshish Ghia - Senior VP & CFO Conference Call Participants Nick Nelson - Senior Analyst Operator Hello, and welcome to the Perdocayo Education Corporation First Quarter twenty twenty five Earnings Conference Call. Now I would like to hand the call over to Nick Nelson from Alpha IR. Nick, you may begin. Nick Nelson Thank you, operator. Good afternoon, everyone, and thank you for joining ...
Perdoceo Education (PRDO) - 2025 Q1 - Earnings Call Transcript
2025-05-01 21:00
Perdoceo Education (PRDO) Q1 2025 Earnings Call May 01, 2025 05:00 PM ET Speaker0 Hello, and welcome to the Perdocayo Education Corporation First Quarter twenty twenty five Earnings Conference Call. Now I would like to hand the call over to Nick Nelson from Alpha IR. Nick, you may begin. Speaker1 Thank you, operator. Good afternoon, everyone, and thank you for joining us for our first quarter twenty twenty five earnings call. With me on the call today is Todd Nelson, President and Chief Executive Officer an ...
Perdoceo Education (PRDO) - 2025 Q1 - Quarterly Report
2025-05-01 20:02
PART I—FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Unaudited Q1 2025 statements show significant revenue and net income growth driven by the USAHS acquisition, with total assets growing to $1.27 billion and increased stockholders' equity [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets reached $1.269 billion as of March 31, 2025, driven by higher cash and receivables, while total stockholders' equity increased to $970.3 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $686,004 | $640,154 | | **Total assets** | $1,268,544 | $1,237,034 | | **Total current liabilities** | $153,960 | $132,162 | | **Total liabilities** | $298,289 | $277,498 | | **Total stockholders' equity** | $970,255 | $959,536 | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q1 2025 revenue grew 26.6% year-over-year to $213.0 million, driving a 10.8% increase in net income to $43.7 million, or $0.65 per diluted share Q1 2025 vs Q1 2024 Income Statement (in thousands, except per share amounts) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Revenue** | $213,004 | $168,264 | | **Operating Income** | $51,727 | $46,278 | | **Net Income** | $43,688 | $39,442 | | **Net Income Per Share - Diluted** | $0.65 | $0.59 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased to $65.1 million in Q1 2025, while financing activities used $44.4 million for share repurchases and dividends Q1 2025 vs Q1 2024 Cash Flows (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $65,127 | $54,492 | | **Net cash provided by (used in) investing activities** | $1,182 | $(30,801) | | **Net cash used in financing activities** | $(44,413) | $(15,881) | | **Net increase in cash** | $21,896 | $7,810 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the $137.0 million USAHS acquisition, segment revenue, a new DOJ Civil Investigative Demand, and share repurchase activity - On December 2, 2024, the Company acquired the University of St. Augustine for Health Sciences (USAHS) for a preliminary purchase price of **$137.0 million**[25](index=25&type=chunk)[27](index=27&type=chunk) - On September 7, 2024, the Company received a **new Civil Investigative Demand (CID) from the DOJ** regarding CTU's admissions staff compensation practices and its Fast Track credit program[65](index=65&type=chunk) - During Q1 2025, the company repurchased approximately **1.0 million shares for $25.2 million** under its stock repurchase program, with **$21.9 million remaining available** for repurchase as of March 31, 2025[82](index=82&type=chunk)[83](index=83&type=chunk) Q1 2025 Revenue by Segment (in thousands) | Segment | Q1 2025 Revenue | | :--- | :--- | | CTU | $119,579 | | AIUS | $54,059 | | USAHS | $39,183 | | Corporate and Other | $183 | | **Total** | **$213,004** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes 26.6% Q1 revenue growth to the USAHS acquisition and strong CTU performance, with total student enrollment growing 16.7% and maintaining a strong liquidity position [Overview](index=30&type=section&id=MD&A%20Overview) Total student enrollment rose 16.7% in Q1 2025, driven by CTU growth and the USAHS acquisition, leading to a 26.6% revenue increase and higher adjusted operating income Total Student Enrollments as of March 31 | Segment | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | CTU | 33,400 | 30,200 | 10.6% | | AIUS | 10,600 | 11,100 | -4.5% | | USAHS | 4,200 | - | NM | | **Total** | **48,200** | **41,300** | **16.7%** | Q1 Financial Highlights (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Operating Income** | $51,727 | $46,278 | | **Adjusted Operating Income** | $63,534 | $49,294 | [Consolidated Results of Operations](index=33&type=section&id=MD&A%20Consolidated%20Results%20of%20Operations) Consolidated Q1 2025 revenue rose 26.6% due to the USAHS acquisition, which also drove higher operating expenses, resulting in an 11.8% increase in operating income - Revenue for Q1 2025 increased by **26.6% or $44.7 million** compared to the prior year, primarily driven by the acquisition of USAHS[117](index=117&type=chunk) - Depreciation and amortization expense increased by **$8.8 million**, driven by the USAHS acquisition, which includes amortization for definite-lived intangible assets and finance leases[125](index=125&type=chunk) - The effective tax rate for Q1 2025 was **22.7%**, down from 25.4% in Q1 2024, primarily due to a larger benefit from the tax effect of stock-based compensation[127](index=127&type=chunk) [Segment Results of Operations](index=36&type=section&id=MD&A%20Segment%20Results%20of%20Operations) CTU revenue and operating income grew, AIUS operating income rose despite a slight revenue dip, and the new USAHS segment contributed $39.2 million in revenue Q1 2025 Segment Performance (in thousands) | Segment | Revenue | Operating Income (Loss) | Operating Margin | | :--- | :--- | :--- | :--- | | CTU | $119,579 | $46,097 | 38.5% | | AIUS | $54,059 | $11,884 | 22.0% | | USAHS | $39,183 | $(330) | -0.8% | | Corporate and other | $183 | $(5,924) | NM | [Liquidity, Financial Position and Capital Resources](index=37&type=section&id=MD&A%20Liquidity,%20Financial%20Position%20and%20Capital%20Resources) The company maintains a strong liquidity position with $612.2 million in cash and investments, funding operations and shareholder returns with $65.1 million in Q1 operating cash flow - As of March 31, 2025, cash, cash equivalents, restricted cash and available-for-sale short-term investments totaled **$612.2 million**[139](index=139&type=chunk) - Net cash from operating activities totaled **$65.1 million** for Q1 2025, up from $54.5 million in Q1 2024[145](index=145&type=chunk) - The company expects capital expenditures for the full year 2025 to be between **1.0% and 2.0% of revenue**[150](index=150&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is limited interest rate exposure on its investment portfolio, which is not considered material to earnings or cash flows - The company's main market risk is from changes in interest rates on its investments, but it believes the **exposure is not significant**[158](index=158&type=chunk) - A hypothetical **100 basis point** increase or decrease in average interest rates would **not have a material impact** on future earnings, fair values, or cash flows[159](index=159&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls during the quarter - Management, including the CEO and CFO, concluded that as of March 31, 2025, **disclosure controls and procedures were effective**[161](index=161&type=chunk) - **No changes occurred in internal control** over financial reporting during Q1 2025 that have materially affected, or are reasonably likely to materially affect, internal controls[163](index=163&type=chunk) PART II—OTHER INFORMATION [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 9, 'Contingencies,' for detailed information on the company's ongoing legal matters - Information regarding legal proceedings is provided in **Note 9 "Contingencies"** to the unaudited condensed consolidated financial statements[167](index=167&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the company's 2024 Form 10-K for a comprehensive discussion of risk factors affecting the business - The company refers readers to the **Risk Factors section of its 2024 Form 10-K** for a discussion of factors that could affect its business[168](index=168&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 985,000 shares in Q1 2025 under its publicly announced stock repurchase program - A stock repurchase program authorizing up to **$50.0 million** was approved on February 20, 2024, and commenced on March 1, 2024[169](index=169&type=chunk)[172](index=172&type=chunk) Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Plan | | :--- | :--- | :--- | :--- | | Jan 2025 | - | $ - | - | | Feb 2025 | 350,000 | $25.81 | 350,000 | | Mar 2025 | 941,657 | $25.17 | 635,000 | | **Total** | **1,291,657** | | **985,000** | [Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists all filed exhibits, including Sarbanes-Oxley certifications and Inline XBRL data files - The exhibit list includes **CEO/CFO certifications under Sections 302 and 906** of the Sarbanes-Oxley Act and XBRL filings[173](index=173&type=chunk)[178](index=178&type=chunk)
Perdoceo Education (PRDO) - 2025 Q1 - Quarterly Results
2025-05-01 20:01
Financial Performance - Operating income increased by 11.8% to $51.7 million, while adjusted operating income rose by 28.9% to $63.5 million[4] - Revenue for the quarter ended March 31, 2025, was $213.0 million, reflecting a 26.6% increase from $168.3 million in the prior year quarter[5] - Net income for Q1 2025 was $43.688 million, representing a 10.7% increase compared to $39.442 million in Q1 2024[30] - Total revenue for Q1 2025 was $213.004 million, a 26.6% increase from $168.264 million in Q1 2024[29] - Adjusted Operating Income for Q1 2025 was $63.534 million, up from $49.294 million in Q1 2024, representing a 29% increase[36] - Reported Earnings Per Diluted Share for Q1 2025 was $0.70, compared to $0.60 in Q1 2024, reflecting a 16.67% increase[38] - The full-year 2025 outlook for Adjusted Operating Income is between $220.0 million and $235.0 million, compared to $188.898 million in 2024, indicating a potential growth of 16.5% to 24.5%[36] - Reported Earnings Per Diluted Share for the full year 2025 is projected to be between $2.40 and $2.56, compared to $2.26 in 2024, suggesting a growth of 6.2% to 13.3%[38] Student Enrollment - Total student enrollments increased by 16.7% to 48,200 as of March 31, 2025, compared to 41,300 in the prior year[7] Cash Flow and Liquidity - Net cash provided by operating activities was $65.1 million, a 19.5% increase from $54.5 million in the prior year[19] - Cash and cash equivalents, including restricted cash and short-term investments, totaled $612.176 million as of March 31, 2025, compared to $591.548 million at the end of 2024[27] - As of March 31, 2025, the company had $612.2 million in cash, cash equivalents, restricted cash, and available-for-sale short-term investments[19] Operating Expenses and Capital Expenditures - Operating expenses increased to $161.277 million in Q1 2025, up from $121.986 million in Q1 2024, primarily due to higher educational services and facilities costs[29] - Capital expenditures for the quarter were $1.7 million, a 45.0% increase from $1.2 million in the prior year[17] - Depreciation and amortization for Q1 2025 was $11.807 million, significantly higher than $3.016 million in Q1 2024, indicating increased capital expenditures[36] Acquisitions - The company completed the acquisition of the University of St. Augustine for Health Sciences (USAHS) on December 2, 2024, contributing to revenue growth[6] - Perdoceo completed the acquisition of USAHS on December 2, 2024, contributing to the revenue growth in Q1 2025[34] Future Outlook - The company expects operating income for the second quarter of 2025 to be between $48.8 million and $50.8 million, and adjusted operating income to be between $59.0 million and $61.0 million[21] - Operating income for Q2 2025 is expected to be between $48.8 million and $50.8 million, compared to $46.006 million in Q2 2024, indicating a growth of 6% to 6.1%[36] - The outlook for Q2 2025 projects Adjusted Operating Income between $59.0 million and $61.0 million, compared to $49.075 million in Q2 2024[36] Dividends - The board declared a quarterly dividend of $0.13 per share, payable on June 13, 2025[16] Non-GAAP Financial Measures - The company emphasizes the importance of non-GAAP financial measures to analyze core performance, which excludes certain non-cash items[40] Share Information - The company reported a weighted average diluted shares outstanding of 66,872 for Q1 2025, compared to 66,841 in Q1 2024[29] Operating Margin - The operating margin for Q1 2025 was 24.3%, down from 27.5% in Q1 2024[34] Adjustments - The company reported a total pre-tax adjustment of $0.06 for Q1 2025, up from $0.02 in Q1 2024, highlighting an increase in amortization for acquired intangible assets[38] - The total adjustments after tax for Q1 2025 were $0.05, compared to $0.01 in Q1 2024, reflecting a significant increase in adjusted earnings[38]