Perdoceo Education (PRDO)

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Are You Looking for a Top Momentum Pick? Why Perdoceo Education (PRDO) is a Great Choice
ZACKS· 2024-11-25 18:01
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following 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 in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...
Perdoceo Education Corporation (PRDO) Hit a 52 Week High, Can the Run Continue?
ZACKS· 2024-11-14 15:15
Shares of Perdoceo Education (PRDO) have been strong performers lately, with the stock up 30.7% over the past month. The stock hit a new 52-week high of $29.47 in the previous session. Perdoceo Education has gained 59.2% since the start of the year compared to the 11.3% move for the Zacks Consumer Discretionary sector and the 3.9% 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 Stock Up on Better-Than-Expected Q3 Earnings, '24 View Raised
ZACKS· 2024-11-13 14:10
Perdoceo Education Corporation (PRDO) posted better-than-expected results in third-quarter 2024, with earnings and revenues surpassing the Zacks Consensus Estimate.However, on a year-over-year basis, both metrics declined due to the lagging impact of 2023 operational changes at the American InterContinental University System (“AIUS”) and the simplification of professional development offerings at Colorado Technical University (“CTU”).Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.F ...
Perdoceo Education (PRDO) Surpasses Q3 Earnings and Revenue Estimates
ZACKS· 2024-11-12 23:15
Perdoceo Education (PRDO) came out with quarterly earnings of $0.59 per share, beating the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.64 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.32%. A quarter ago, it was expected that this for-profit education company would post earnings of $0.58 per share when it actually produced earnings of $0.60, delivering a surprise of 3.45%.Over the last four ...
Dirt Cheap Perdoceo Education's Stock: Chatbots To Enrich Learning
Seeking Alpha· 2024-09-13 15:00
Core Insights - Perdoceo Education Corp is investing in new virtual campus and mobile platforms to enhance learning and accelerate student enrollment [1] - The company reported better-than-expected EPS and revenue growth in the last quarterly report, with positive expectations for 2024 and 2025 EPS growth [2] - The use of AI and chatbots is streamlining student engagement and may improve future cash flow margins [3][4] Investment and Financial Performance - The company has initiated a stock repurchase program, acquiring shares at approximately $17 per share, indicating potential for stock price appreciation [7] - Recent increases in net income and free cash flow suggest a positive financial trajectory, despite some concerns over revenue growth [8] - The total assets and equity have significantly increased, with total assets reaching $1,078.2 million, indicating strong business growth [11] Strategic Initiatives - New agreements with employers are expected to reduce recruiting and marketing costs while increasing student enrollment, particularly among those with little or no debt [5] - The acquisition of non-degree professional development programs is anticipated to boost student enrollment and diversify offerings [6] - The company is focusing on enhancing technology infrastructure to improve the learning experience for adult learners [4] Valuation and Market Position - The current valuation suggests that Perdoceo is significantly undervalued compared to competitors, with a target price of $40 per share based on DCF analysis [18][19] - The company's P/E ratios are lower than sector medians, indicating potential for stock price appreciation [19][20] - Analysts see significant upside potential in the stock price, reinforcing the view that the company is undervalued [19] Future Outlook - Expectations for future free cash flow growth are optimistic, supported by the development of digital technologies and operational changes [13][25] - The company is positioned to benefit from demographic trends and the increasing demand for online education, particularly among adult learners [4][25] - Continued focus on enhancing academic outcomes and retention through technology investments is expected to drive future growth [25]
Perdoceo Education (PRDO) Q2 Earnings and Revenues Beat Estimates
ZACKS· 2024-08-01 00:05
Group 1: Earnings Performance - Perdoceo Education reported quarterly earnings of $0.60 per share, exceeding the Zacks Consensus Estimate of $0.58 per share, but down from $0.61 per share a year ago, representing an earnings surprise of 3.45% [1] - The company has surpassed consensus EPS estimates for the last four quarters [2] - Revenue for the quarter ended June 2024 was $166.74 million, surpassing the Zacks Consensus Estimate by 3.62%, but down from $186.56 million year-over-year [2] Group 2: Stock Performance and Outlook - Perdoceo Education shares have increased approximately 43.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 14% [3] - The future performance of the stock will depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.53 on revenues of $165.53 million, and for the current fiscal year, it is $2.21 on revenues of $653.72 million [7] Group 3: Industry Context - The Schools industry, to which Perdoceo Education belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook [8] - The performance of Perdoceo Education's stock may also be influenced by the overall industry outlook [8] - Another company in the same industry, Afya, is expected to report quarterly earnings of $0.37 per share, reflecting a year-over-year increase of 27.6% [9]
Perdoceo Education (PRDO) - 2024 Q2 - Earnings Call Transcript
2024-07-31 23:36
Financial Data and Key Metrics Changes - The company reported second quarter net income of $38.4 million, or $0.57 per diluted share, compared to $54.7 million, or $0.80 per diluted share in the prior year [10] - Adjusted earnings per diluted share was $0.60, slightly down from $0.61 in the previous year [10] - Revenue for the second quarter was $166.7 million, a decrease of 10.6% from $186.6 million in the prior year quarter [11] - Operating income for the second quarter was $46 million, down from $48.1 million in the prior year [10] Business Line Data and Key Metrics Changes - At CTU, second quarter revenue decreased by 5.4% to $112.8 million, primarily due to changes in professional development offerings [14] - Operating income at CTU was $42.9 million, an increase from $40.5 million in the prior year [14] - At AIU System, second quarter revenue was $53.7 million, down 19.9% from the prior year quarter, with operating income decreasing to $12.9 million from $17.1 million [15] Market Data and Key Metrics Changes - Total enrollments at CTU increased by 14.7% year-over-year, driven by a positive timing impact from the academic calendar and growth in corporate engagement programs [12] - AIU System experienced an 18.2% decline in total enrollments, although the rate of decline has moderated compared to previous quarters [8][13] Company Strategy and Development Direction - The company announced an 18.2% increase in the quarterly dividend to $0.13 per share, marking the first increase since the inaugural dividend payment [6] - A definitive agreement was made to acquire the University of St. Augustine for Health Sciences for approximately $142 million to $144 million, expected to enhance the company's academic offerings [7][20] - The company is focusing on enhancing corporate engagement programs and utilizing technology to improve student experiences [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in high levels of student retention and engagement, expecting these trends to continue through 2024 [22] - The company anticipates full-year 2024 adjusted operating income to range between $179 million and $190 million, an increase from previous guidance [21] - The outlook for AIU System includes expectations for double-digit enrollment growth by year-end 2024, despite current revenue challenges [24] Other Important Information - The effective tax rate for the second quarter was 27.5%, with expectations for the full year to be between 26.5% and 27.5% [16] - Year-to-date net cash flows from operations were $93 million, an increase from $66.2 million in the prior year [17] - The company ended the quarter with $675.2 million in cash and equivalents, an increase of approximately $71 million since the end of the previous year [18] Q&A Session Summary Question: What are the expectations for student enrollment growth? - Management expects total student enrollments at AIU System to experience double-digit growth by year-end 2024, despite current declines [24] Question: How will the acquisition of St. Augustine impact the company? - The acquisition is expected to be immediately accretive to adjusted operating income beginning in 2025 [20] Question: What is the outlook for revenue in the second half of 2024? - Revenue is expected to grow in the fourth quarter, offsetting declines in the third quarter due to consistent academic calendars [12][22]
Perdoceo Education (PRDO) - 2024 Q2 - Quarterly Report
2024-07-31 20:16
Enrollment Trends - Total student enrollments increased by 4.2% as of June 30, 2024, with Colorado Technical University (CTU) up 14.7% and American InterContinental University System (AIUS) down 18.2%[56] - Total student enrollments increased by 4.2% to 39,600 as of June 30, 2024, compared to 38,000 in the prior year[72] Revenue and Income - Revenue for the current quarter decreased by 10.6% or $19.8 million compared to the prior year quarter, with CTU down 5.4% or $6.5 million and AIUS down 19.9% or $13.3 million[57] - Adjusted operating income was $50.9 million for the current quarter compared to $55.2 million for the prior year quarter[57] - Net income for Q2 2024 was $38,429, a decrease of 29.7% compared to $54,673 in Q2 2023[61] - Total revenue for Q2 2024 decreased by 10.6% to $166.74 million from $186.56 million in Q2 2023[61] - Adjusted Operating Income for Q2 2024 was $50,890, down 7.3% from $55,172 in Q2 2023[58] Operational Performance - Operating income for the current quarter decreased to $46.0 million from $48.1 million in the prior year quarter[57] - Current quarter operating income decreased by 4.3% or $2.1 million, while year to date operating income increased by 0.9% or $0.9 million compared to the prior year period[67] - The company anticipates continued revenue challenges due to operational changes and enrollment trends[62] Expenses and Cost Management - Total general and administrative expenses for Q2 2024 were $89,311, down 11.2% from $100,588 in Q2 2023[64] - Educational services and facilities expense decreased by 16.0% to $27,516 in Q2 2024 from $32,748 in Q2 2023[63] - Bad debt expense for Q2 2024 was $6,075, a decrease of 25.6% compared to $8,170 in Q2 2023[64] - General and administrative expenses decreased by 11.2% or $11.3 million for the current quarter and 17.1% or $36.5 million year to date compared to the prior year periods[65] - Total bad debt expense improved by 25.6% or $2.1 million for the current quarter and 33.3% or $6.3 million year to date compared to the prior year periods[66] Tax and Regulatory Environment - The effective tax rate for Q2 2024 was 27.5%, compared to 26.7% in Q2 2023[61] - The effective tax rate for the quarter ended June 30, 2024, was 27.5%, compared to 26.7% for the prior year quarter[68][69] - The company operates in a highly regulated environment, facing scrutiny from various governmental and consumer advocacy groups[53] - Regulatory changes have led to operational adjustments at AIUS, impacting prospective student enrollment and marketing strategies[53] Future Outlook and Investments - The company anticipates strong levels of student retention and engagement to continue through the remainder of 2024[56] - The company expects full year revenue for 2024 to be lower primarily due to the lag impact on revenue from lower beginning total student enrollments at AIUS[56] - The company is committed to investing in technology to enhance the educational experience and improve operational efficiency[56] Cash Flow and Financial Position - Cash balances totaled $675.2 million as of June 30, 2024, with expectations to generate cash during the remainder of 2024[75] - Net cash flows provided by operating activities increased to $93.0 million for the year to date ended June 30, 2024, compared to $66.2 million for the same period in 2023, primarily due to timing differences in cash inflows related to academic session start dates[76] - Net cash flows used in investing activities totaled $60.1 million for the year to date ended June 30, 2024, up from $30.5 million in 2023, with a net cash outflow from purchases and sales of available-for-sale investments of $58.1 million[77] - Net cash flows used in financing activities increased to $23.0 million for the year to date ended June 30, 2024, compared to $4.6 million in 2023, including share repurchase payments of $6.8 million[78] Student Financials - Student receivables, net increased by 19% to $34.855 million as of June 30, 2024, from $29.398 million at December 31, 2023, driven by timing of academic terms and increased student enrollments[80] - Deferred revenue rose by 49% to $55.390 million as of June 30, 2024, compared to $37.215 million at December 31, 2023, influenced by academic term timing and enrollment growth[80] - Payroll and related benefits decreased by 23% to $25.295 million as of June 30, 2024, from $32.684 million at December 31, 2023, due to annual incentive compensation payments[81] - Income taxes increased by 64% to $6.502 million as of June 30, 2024, compared to $3.974 million at December 31, 2023, primarily related to estimated federal and state income tax payments for 2024[81] Stock and Borrowing - The Board of Directors approved a new stock repurchase program for up to $50.0 million, effective from March 1, 2024, to September 30, 2025[75] - The company has no outstanding borrowings under its credit facility as of June 30, 2024, with interest rates subject to a minimum of 3.0%[83] - The company believes that exposure to adverse changes in interest rates applicable to investments or borrowings is not significant, with a 10% change in interest rates not materially impacting future earnings or cash flows[83] Accreditation - The Higher Learning Commission reaffirmed AIUS' accreditation, with the next review scheduled for 2033-2034[59] Operating Margin - Operating margin for the total company improved to 27.6% in the current quarter from 25.8% in the prior year quarter[70]
Perdoceo (PRDO) Expands into Health Sciences With USAHS Buyout
ZACKS· 2024-07-17 16:30
Founded in 1979, USAHS is one of the nation's leading universities known for its graduate health sciences degrees in physical therapy, occupational therapy, speech-language therapy, nursing and continuing education programs. The university operates campuses in San Marcos, CA; St. Augustine and Miami, FL; and Austin and Dallas, TX, in addition to offering online programs. USAHS holds accreditation from the Western Association of Schools and Colleges (WASC). Shares of this Zacks Rank #3 (Hold) company have ga ...
PRDO vs. LOPE: Which Stock Is the Better Value Option?
ZACKS· 2024-06-19 16:40
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits. The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P ...