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Strayer Education (STRA) Beats Earnings Estimates in Q3
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Strayer Education Inc. (STRA - Free Report) reported third-quarter 2016 adjusted earnings of 25 cents per share, which beat the Zacks Consensus Estimate of 21 cents by 19%. However, adjusted earnings decreased 21.9% year over year.
Revenues increased 3% to $102.2 million from $99.1 million a year ago, primarily buoyed by increased enrollment which was however partly offset by lower revenue per student.
Enrollment Details
Total enrollment at Strayer University for the fall term 2016 increased 6% to 45,509 students compared with 42,975 students for the fall term 2015. New student enrollments rose by 13% and continuing student enrollments increased by 4%.
Adjusted operating margin decreased 240 basis points (bps) to 4.5%, primarily due to accelerated investments in New York Code and Design Academy expansion, academic program enhancements, and brand awareness initiatives. Bad debt expenses, as a percentage of revenues, were 3.8% in the third quarter, reflecting a year-over-year increase of 150 bps owing to a one time true-up.
Financial Details
Strayer Education ended the quarter with cash and cash equivalents of $120.5 million, as of Sep 30, 2016, compared with $106.8 million as of Dec 31, 2015.
The company generated $30.1 million in cash from operating activities in the first nine months of 2016 compared with $54.5 million a year ago. Capital expenditures totaled $7.5 million for the nine months ended Sep 30, 2016, compared with $9.6 million for the same period in 2015.
The company had a $70 million worth of share repurchase authorization remaining as of Sep 30, 2016. Notably, no shares were repurchased in the third quarter of 2016.
DeVry Education Group Inc. (DV - Free Report) is slated to release third-quarter results on Nov 1. The Zacks Consensus Estimate for earnings is pegged at 62 cents.
American Public Education, Inc. (APEI - Free Report) is scheduled to report third-quarter results on Nov 7. The Zacks Consensus Estimate for earnings is pegged at 31 cents.
Universal Technical Institute, Inc. (UTI - Free Report) is expected to release third-quarter numbers on Dec 6. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 29 cents.
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Strayer Education (STRA) Beats Earnings Estimates in Q3
Strayer Education Inc. (STRA - Free Report) reported third-quarter 2016 adjusted earnings of 25 cents per share, which beat the Zacks Consensus Estimate of 21 cents by 19%. However, adjusted earnings decreased 21.9% year over year.
Revenues increased 3% to $102.2 million from $99.1 million a year ago, primarily buoyed by increased enrollment which was however partly offset by lower revenue per student.
Enrollment Details
Total enrollment at Strayer University for the fall term 2016 increased 6% to 45,509 students compared with 42,975 students for the fall term 2015. New student enrollments rose by 13% and continuing student enrollments increased by 4%.
STRAYER EDUC Price, Consensus and EPS Surprise
STRAYER EDUC Price, Consensus and EPS Surprise | STRAYER EDUC Quote
Operating Results
Adjusted operating margin decreased 240 basis points (bps) to 4.5%, primarily due to accelerated investments in New York Code and Design Academy expansion, academic program enhancements, and brand awareness initiatives. Bad debt expenses, as a percentage of revenues, were 3.8% in the third quarter, reflecting a year-over-year increase of 150 bps owing to a one time true-up.
Financial Details
Strayer Education ended the quarter with cash and cash equivalents of $120.5 million, as of Sep 30, 2016, compared with $106.8 million as of Dec 31, 2015.
The company generated $30.1 million in cash from operating activities in the first nine months of 2016 compared with $54.5 million a year ago. Capital expenditures totaled $7.5 million for the nine months ended Sep 30, 2016, compared with $9.6 million for the same period in 2015.
The company had a $70 million worth of share repurchase authorization remaining as of Sep 30, 2016. Notably, no shares were repurchased in the third quarter of 2016.
Strayer Education currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Upcoming Peer Releases
DeVry Education Group Inc. (DV - Free Report) is slated to release third-quarter results on Nov 1. The Zacks Consensus Estimate for earnings is pegged at 62 cents.
American Public Education, Inc. (APEI - Free Report) is scheduled to report third-quarter results on Nov 7. The Zacks Consensus Estimate for earnings is pegged at 31 cents.
Universal Technical Institute, Inc. (UTI - Free Report) is expected to release third-quarter numbers on Dec 6. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 29 cents.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>