Strayer Education, Inc.

Strayer Education, Inc. (STRA - Analyst Report) has seen solid share price advances against the broader market. The company has also been the subject of higher estimate revisions on a record first quarter.

Company Description

Strayer Education, an education services holding company, owns Strayer University and 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 45,000 working adult students at 65 campuses in 14 states, Washington, D.C. and worldwide via the Internet.

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

Rising Forecasts

The company, which has outperformed the market over the pas year, is seeing higher estimate revisions on a record first quarter.

Analysts are calling for second-quarter earnings of $1.97 per share, up from $1.81 over the past 60 days.

For the full year, analysts boosted earnings estimates to $7.27 per share from $6.99 over the past 60 days.

For 2010, analysts see earnings of $8.87 per share, versus the 2 months-ago projections of $8.60.

Record Results

The company 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.

The second-quarter report report is scheduled for release on July 16, 2009.

Favorable Industry Comparisons

Strayer boasts a return of equity (ROE) of 51%, soaring past the industry average of 14%. Strayer’s net profit margin of 20% is ahead of the industry average of 10%. The company also rewards shareholders with an industry-leading dividend yield of 1%.