Strayer Education, Inc.

Strayer Education, Inc. (STRA - Analyst Report) recently posted record results in the first quarter. Revenues jumped 28% year-over-year, while earnings per share of $2.08 came in 6% ahead of the consensus estimate and topped the year-prior $1.64.

Company Description

Strayer Education, an education services holding company, owns Strayer University and certain other assets. The company’s mission is to make higher education achievable and convenient for working adults in today’s economy.

Strayer offers undergraduate and graduate degree programs in business administration, accounting, information technology, education, health care, and public administration to more than 44,000 working adult students at 60 campuses in 12 states, Washington, D.C. and worldwide via the Internet.

Founded in 1892, Strayer University is accredited by the Middle States Commission on Higher Education.

A Record Quarter

The company recently posted record results in the first quarter. Revenues jumped 28% year-over-year, while earnings per share of $2.08 came in 6% ahead of the consensus estimate and topped the year-prior $1.64. Strayer’s Spring 2009 total enrollments were up 22%, and the number for new students increased by 26%.

The company said it continues to expand its geographic footprint with the successful opening of its first two campuses in Ohio, located in Cincinnati and Columbus. Strayer also noted that, as of March 30, its balance sheet showed cash equivalents and marketable securities of $84.0 million with no debt.

Thanks to the strong spring enrollment growth, Strayer’s second-quarter earnings per share outlook now ranges between $1.95 to $1.97 per share.

11 out of 12 analysts are calling for second-quarter earnings of $1.97 per share, up from last weeks $1.81. For the full year, 13 out of 15 analysts boosted earnings estimates to $7.25 per share from last week’s $6.99.

Favorable Industry Comparisons

Strayer boasts a return of equity (ROE) of 51%, more than doubling the industry average of 22%. Strayer’s net profit margin of 20% is ahead of the industry average of 15%. The company also rewards shareholders with a dividend yield of 1%.