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Strategic Education, Inc. or SEI (STRA - Free Report) reported better-than-expected results for fourth-quarter 2021. Earnings and revenues surpassed the Zacks Consensus Estimate. Despite top-line growth on a year-over-year basis, adjusted earnings declined due to lower contribution from the U.S. Higher Education segment.
Karl McDonnell, CEO of Strategic Education, said, “As we enter 2022, we are focused on investing in opportunities within our diversified portfolio, including more growth in the Education Technology Services and Australia/New Zealand segments and continued recovery in our U.S. Higher Education segment.”
Inside The Headlines
SEI reported adjusted earnings of $1.15 per share, which surpassed the Zacks Consensus Estimate of 82 cents by 40.2% but declined 17.3% from the year-ago quarter.
Strategic Education Inc. Price, Consensus and EPS Surprise
Total revenues of $272.1 million marginally topped the consensus estimate of $270.7 million and grew 1.7% from the prior-year level. Adjusted revenues, which excluded the impact of a purchase accounting adjustment and foreign currency exchange, fell 2.1% year over year.
Segment Details
SEI currently operates in three reportable segments: U.S. Higher Education or USHE, Education Technology Services (earlier known as Alternative Learning) and Australia/New Zealand or ANZ.
The USHE segment comprises Strayer and Capella Universities. Segment’s revenues fell 14.9% year over year to $198.6 million due to lower fourth-quarter enrollment and revenue-per-student. Student enrollment declined 14.3% from the year-ago level to 78,721 students. FlexPath enrollment was 18% of USHE enrollment versus 15% in the same period of 2020. The segment’s operating margin contracted significantly to 10% from 18.9% a year ago.
The Education Technology Services segment includes Employer Solutions, Workforce Edge and Sophia Learning. The segment’s quarterly revenues came in at $13.9 million, reflecting 29.8% year-over-year growth backed by growth in Sophia Learning subscriptions. Employer affiliated enrollment was 21.7% of USHE enrollment compared with 18.8% in the year-ago period. Its adjusted operating margin came in at 36.5% for the reported quarter, down from 45.9% a year ago.
The ANZ segment includes Torrens University, Think Education and Media Design School. Revenues from the segment totaled $59.6 million and adjusted revenues were $60.3 million, excluding the impact of a purchase accounting adjustment and foreign currency exchange. Adjusted operating margin was 21.4% for the reported period. Student enrollment within ANZ was 18,942 during the reported period.
Operating Highlights
Adjusted operating margin of 13.9% was down 300 basis points from the year-ago figure of 16.9%. Adjusted EBITDA for the reported quarter was $56.1 million, down 12.6% from $64.2 million in the prior-year period.
2021 Highlights
Total revenues for 2021 came in at $1.13 billion compared with $1.03 billion in 2020, up 10.1%. Adjusted earnings per share came in at $4.82 compared with $6.68 cents in the prior year. Adjusted operating margin dropped to 14.6% from 20.3% in 2020. Adjusted EBITDA also fell 12.5% from a year ago to $237.3 million.
Financial Details
As of Dec 31, 2021, STRA recorded cash and cash equivalents of $268.9 million compared with $187.5 million at 2020-end.
Cash provided by operating activities was $180.5 million in 2021 compared with $142.9 million in the comparable year-ago period. Capital expenditures were $49.4 million compared with $46.8 million a year ago.
A Look at Some Recent Consumer Discretionary Releases
Mohawk Industries, Inc. (MHK - Free Report) reported impressive results for fourth-quarter 2021. The top and bottom lines surpassed their respective Zacks Consensus Estimate as well as improved strongly on a year-over-year basis.
The upside was backed by solid housing demand and favorable price, mix, and productivity.
Adtalem Global Education Inc. (ATGE - Free Report) reported lackluster second-quarter fiscal 2022 results. The company’s earnings and revenues lagged their respective Zacks Consensus Estimate due to the pandemic-related challenges.
Also, Adtalem reduced its fiscal 2022 guidance for earnings and revenues due to the pending sale of the Financial Services segment and COVID-related headwinds associated with the Omicron variant.
Leggett & Platt, Incorporated (LEG - Free Report) reported tepid earnings for fourth-quarter 2021. The top and bottom lines surpassed the Zacks Consensus Estimate. On a year-over-year basis, earnings declined despite revenue growth.
Despite strong raw material-related selling price and acquisitions, Leggett witnessed higher costs associated with supply chain issues, semiconductor and foam chemical shortages, labor constraints as well as transportation challenges.
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Strategic Education (STRA) Q4 Earnings Top, USHE Enrollment Low
Strategic Education, Inc. or SEI (STRA - Free Report) reported better-than-expected results for fourth-quarter 2021. Earnings and revenues surpassed the Zacks Consensus Estimate. Despite top-line growth on a year-over-year basis, adjusted earnings declined due to lower contribution from the U.S. Higher Education segment.
Karl McDonnell, CEO of Strategic Education, said, “As we enter 2022, we are focused on investing in opportunities within our diversified portfolio, including more growth in the Education Technology Services and Australia/New Zealand segments and continued recovery in our U.S. Higher Education segment.”
Inside The Headlines
SEI reported adjusted earnings of $1.15 per share, which surpassed the Zacks Consensus Estimate of 82 cents by 40.2% but declined 17.3% from the year-ago quarter.
Strategic Education Inc. Price, Consensus and EPS Surprise
Strategic Education Inc. price-consensus-eps-surprise-chart | Strategic Education Inc. Quote
Total revenues of $272.1 million marginally topped the consensus estimate of $270.7 million and grew 1.7% from the prior-year level. Adjusted revenues, which excluded the impact of a purchase accounting adjustment and foreign currency exchange, fell 2.1% year over year.
Segment Details
SEI currently operates in three reportable segments: U.S. Higher Education or USHE, Education Technology Services (earlier known as Alternative Learning) and Australia/New Zealand or ANZ.
The USHE segment comprises Strayer and Capella Universities. Segment’s revenues fell 14.9% year over year to $198.6 million due to lower fourth-quarter enrollment and revenue-per-student. Student enrollment declined 14.3% from the year-ago level to 78,721 students. FlexPath enrollment was 18% of USHE enrollment versus 15% in the same period of 2020. The segment’s operating margin contracted significantly to 10% from 18.9% a year ago.
The Education Technology Services segment includes Employer Solutions, Workforce Edge and Sophia Learning. The segment’s quarterly revenues came in at $13.9 million, reflecting 29.8% year-over-year growth backed by growth in Sophia Learning subscriptions. Employer affiliated enrollment was 21.7% of USHE enrollment compared with 18.8% in the year-ago period. Its adjusted operating margin came in at 36.5% for the reported quarter, down from 45.9% a year ago.
The ANZ segment includes Torrens University, Think Education and Media Design School. Revenues from the segment totaled $59.6 million and adjusted revenues were $60.3 million, excluding the impact of a purchase accounting adjustment and foreign currency exchange. Adjusted operating margin was 21.4% for the reported period. Student enrollment within ANZ was 18,942 during the reported period.
Operating Highlights
Adjusted operating margin of 13.9% was down 300 basis points from the year-ago figure of 16.9%. Adjusted EBITDA for the reported quarter was $56.1 million, down 12.6% from $64.2 million in the prior-year period.
2021 Highlights
Total revenues for 2021 came in at $1.13 billion compared with $1.03 billion in 2020, up 10.1%. Adjusted earnings per share came in at $4.82 compared with $6.68 cents in the prior year. Adjusted operating margin dropped to 14.6% from 20.3% in 2020. Adjusted EBITDA also fell 12.5% from a year ago to $237.3 million.
Financial Details
As of Dec 31, 2021, STRA recorded cash and cash equivalents of $268.9 million compared with $187.5 million at 2020-end.
Cash provided by operating activities was $180.5 million in 2021 compared with $142.9 million in the comparable year-ago period. Capital expenditures were $49.4 million compared with $46.8 million a year ago.
Zacks Rank
SEI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A Look at Some Recent Consumer Discretionary Releases
Mohawk Industries, Inc. (MHK - Free Report) reported impressive results for fourth-quarter 2021. The top and bottom lines surpassed their respective Zacks Consensus Estimate as well as improved strongly on a year-over-year basis.
The upside was backed by solid housing demand and favorable price, mix, and productivity.
Adtalem Global Education Inc. (ATGE - Free Report) reported lackluster second-quarter fiscal 2022 results. The company’s earnings and revenues lagged their respective Zacks Consensus Estimate due to the pandemic-related challenges.
Also, Adtalem reduced its fiscal 2022 guidance for earnings and revenues due to the pending sale of the Financial Services segment and COVID-related headwinds associated with the Omicron variant.
Leggett & Platt, Incorporated (LEG - Free Report) reported tepid earnings for fourth-quarter 2021. The top and bottom lines surpassed the Zacks Consensus Estimate. On a year-over-year basis, earnings declined despite revenue growth.
Despite strong raw material-related selling price and acquisitions, Leggett witnessed higher costs associated with supply chain issues, semiconductor and foam chemical shortages, labor constraints as well as transportation challenges.