The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Strategic Education (NASDAQ: STRA) and the rest of the education services stocks fared in Q4.
A whole industry has emerged to address the problem of rising education costs, offering consumers alternatives to traditional education paths such as four-year colleges. These alternative paths, which may include online courses or flexible schedules, make education more accessible to those with work or child-rearing obligations. However, some have run into issues around the value of the degrees and certifications they provide and whether customers are getting a good deal. Those who don’t prove their value could struggle to retain students, or even worse, invite the heavy hand of regulation.
The 8 education services stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 3.7% while next quarter’s revenue guidance was in line.
While some education services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.4% since the latest earnings results.
Strategic Education (NASDAQ: STRA)
Formed through the merger of Strayer Education and Capella Education in 2018, Strategic Education (NASDAQ: STRA) is a career-focused higher education provider.
Strategic Education reported revenues of $311.5 million, up 2.9% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ EBITDA estimates.
“During 2024, we delivered strong performance consistent with our notional operating model including enrollment, revenue, and earnings growth,” said Karl McDonnell, Chief Executive Officer of Strategic Education.
Strategic Education delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The stock is down 13.4% since reporting and currently trades at $84.80.
Is now the time to buy Strategic Education? Access our full analysis of the earnings results here, it’s free.
Best Q4: Adtalem (NYSE: ATGE)
Formerly known as DeVry Education Group, Adtalem Global Education (NYSE: ATGE) is a global provider of workforce solutions and educational services.
Adtalem reported revenues of $447.7 million, up 13.9% year on year, outperforming analysts’ expectations by 4.7%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $101.68.
Is now the time to buy Adtalem? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Laureate Education (NASDAQ: LAUR)
Founded in 1998 by Douglas L. Becker and based in Miami, Laureate Education (NASDAQ: LAUR) is a global network of higher education institutions.
Laureate Education reported revenues of $423.4 million, up 3.4% year on year, exceeding analysts’ expectations by 2.2%. Still, it was a mixed quarter as it posted full-year revenue guidance missing analysts’ expectations.
Laureate Education delivered the weakest full-year guidance update in the group. As expected, the stock is down 1.2% since the results and currently trades at $19.90.
Read our full analysis of Laureate Education’s results here.
Perdoceo Education (NASDAQ: PRDO)
Formerly known as Career Education Corporation, Perdoceo Education (NASDAQ: PRDO) is an educational services company that specializes in postsecondary education.
Perdoceo Education reported revenues of $176.4 million, up 19.3% year on year. This number topped analysts’ expectations by 10.2%. It was a strong quarter as it also produced EPS guidance for next quarter topping analysts’ expectations.
Perdoceo Education pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 12.7% since reporting and currently trades at $25.18.
Read our full, actionable report on Perdoceo Education here, it’s free.
Grand Canyon Education (NASDAQ: LOPE)
Founded in 1949, Grand Canyon Education (NASDAQ: LOPE) is an educational services provider known for its operation at Grand Canyon University.
Grand Canyon Education reported revenues of $292.6 million, up 5.1% year on year. This print surpassed analysts’ expectations by 1.1%. Taking a step back, it was a mixed quarter as it also logged EPS guidance for next quarter beating analysts’ expectations but full-year EPS guidance missing analysts’ expectations.
The stock is down 5.3% since reporting and currently trades at $174.29.
Read our full, actionable report on Grand Canyon Education here, it’s free.
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