Strategic Education (STRA) Beats Q2 Earnings Estimates

Company Performance - Strategic Education (STRA) reported quarterly earnings of $1.52 per share, exceeding the Zacks Consensus Estimate of $1.42 per share, and up from $1.33 per share a year ago, representing an earnings surprise of +7.04% [1] - The company posted revenues of $321.47 million for the quarter ended June 2025, which was slightly below the Zacks Consensus Estimate by 0.59%, but an increase from $312.27 million year-over-year [2] - Over the last four quarters, Strategic Education has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - Strategic Education shares have declined approximately 15% since the beginning of the year, contrasting with the S&P 500's gain of 8.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.33 on revenues of $317.66 million, and for the current fiscal year, it is $5.69 on revenues of $1.27 billion [7] Industry Context - The Schools industry, to which Strategic Education belongs, is currently ranked in the top 13% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]