Grand Canyon Education Tops Expectations

Core Insights - Grand Canyon Education's revenue and earnings growth modestly outpaced analysts' expectations, with adjusted EPS of $2.95 and revenue of$292.6 million [2][3] Financial Performance - Adjusted EPS for Q4 2024 was $2.95, slightly above the expected$2.94, representing a 6.5% increase from $2.77 in Q4 2023 [3] - Revenue reached$292.6 million, exceeding the forecast of $289 million, and showing a 5.1$278.3 million in the previous year [3] - Net income for the quarter was $81.9 million, up from$80.7 million year-over-year, reflecting a 1.4% increase [3] - Operating margin decreased to 34.2% from 35.1% in the prior year, a decline of 90 basis points [3] Business Overview - Grand Canyon Education provides educational support services, primarily focusing on online and campus-based programs, with a significant partnership with Grand Canyon University [4] - The company is emphasizing technological investments and scalability to enhance service offerings and maintain a competitive edge [4][5] Enrollment and Revenue Drivers - The fourth quarter's revenue growth was driven by increased enrollments and higher revenue per student, with online enrollments growing by 7.1% [6][7] - Traditional enrollments at Grand Canyon University saw a slight decline, with on-campus students decreasing from 25,209 to 24,552 [7] Future Outlook - For Q1 2025, the company projects service revenues between $286.5 million and$287.5 million, with an operating margin expectation of 30% to 30.2% [8] - For the full year 2025, service revenue is forecasted to be between $1.075 billion and$1.097 billion, indicating optimism about continued demand growth [8]