Strategic Education (STRA) Q4 Earnings Top Estimates

Core Viewpoint - Strategic Education (STRA) reported quarterly earnings of $1.27 per share, exceeding the Zacks Consensus Estimate of $1.19 per share, but down from $1.68 per share a year ago, indicating a 24.4% year-over-year decline in earnings [1] - The company has consistently surpassed consensus EPS estimates over the last four quarters, showcasing strong performance [2] Financial Performance - For the quarter ended December 2024, Strategic Education posted revenues of $311.46 million, slightly missing the Zacks Consensus Estimate by 0.16%, but up from $302.7 million year-over-year, reflecting a 0.25% increase [2] - The company has exceeded consensus revenue estimates three times in the last four quarters [2] Stock Performance and Outlook - Strategic Education shares have increased approximately 4.8% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] - The company's earnings outlook is favorable, with a current consensus EPS estimate of $1.06 for the upcoming quarter and $5.64 for the current fiscal year, with expected revenues of $302.57 million and $1.28 billion respectively [7] Industry Context - The Schools industry, to which Strategic Education belongs, is currently ranked in the top 16% of over 250 Zacks industries, indicating a strong industry performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Strategic Education's stock performance [5][6]