Strayer Education, Inc. (STRA) boasts a return on equity (ROE) of 43%, surging past the industry average of 11%. Equally as impressive is the fact that Strayer’s balance sheet shows no debt.
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.
Quarterly Results Reflect Solid Growth
The company posted third-quarter revenue growth of 25% on a year-over-year basis. Net income increased to $11.8 million from $9.3 million last year. This translates into earnings per share of 83 cents, which topped analyst estimates by 2 cents.
This was the fourth time in the last four quarters that Strayer exceeded the consensus estimate by an average of 4 cents or 2.65%.
Strayer also noted that during the quarter enrollment jumped 24% to 44,564.
Guidance Raised
After the solid quarter, Strayer boosted its fourth-quarter guidance, saying it now expects to earn between $1.68 and $1.70 per share. The company expects full-year earnings to be between $5.65 and $5.67 per share.
Both the quarterly and full-year outlook is in line with analyst forecasts.
More Favorable Fundamentals
Strayer boasts a return on equity (ROE) of 43%, surging past the industry average of 11%. Equally as impressive is the fact that Strayer’s balance sheet shows no debt.
Higher Income
Strayer hiked its annual divided to $2 per share from $1.50, which translates into a quarterly dividend of 50 cents per share, an increase from 37.5 cents. The first distribution of the higher dividend will occur on December 10 to shareholders of record as of November 26.
The company added that its board amended a share-buyback program to authorize the repurchase of up to $100 million worth of the company's common stock over the next 14 months. As of September 30, Strayer had more than 14.2 million common shares outstanding.
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