NASDAQ$LOPE

Grand Canyon Education Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Second quarter results decreased due to decline in online enrollments at GCU and OTA program enrollment, partially offset by increases in GCU traditional campus enrollments and ABSN program enrollment.

Grand Canyon Education, Inc. reported financial results for the quarter ended June 30, 2022. Service revenue was $199.8 million, a decrease of 0.9% compared to the second quarter of 2021. Net income decreased 48.3% to $25.6 million, compared to $49.5 million for the same period in 2021.

  • Service revenue was $199.8 million for the second quarter of 2022, a decrease of $1.7 million, or 0.9%, as compared to $201.5 million for the second quarter of 2021.
  • Partner enrollments totaled 96,029 at June 30, 2022 as compared to 101,808 at June 30, 2021.
  • Operating income for the three months ended June 30, 2022 was $33.8 million, a decrease of $16.4 million as compared to $50.2 million for the same period in 2021.
  • Net income decreased 48.3% to $25.6 million for the second quarter of 2022, compared to $49.5 million for the same period in 2021.

Headline financials

Total Revenue

$200M

Previous: $201M-0.9%
EPS (adj)

$0.85

Previous: $1.12-24.1%
University Partner Enrollments

96.0K

Previous: 101.8K-5.7%
Off-Campus Enrollments

4.1K

Previous: 4.2K-2.1%
Free Cash Flow

$25.6M

Previous: $49.5M-48.3%
Net Income

$25.6M

Previous: $49.5M-48.3%
Operating Income

$33.8M

Previous: $50.2M-32.6%
Gross Profit

-$5M

Previous: $107M-104.7%
Cash & Equivalents

$139M

Previous: $69.4M+100.7%
Total Assets

$787M

Previous: $1.85B-57.4%

Revenue & EPS history

Grand Canyon Education · Revenue · Quarterly

$200M

Q2 2022-0.9%vs Q2 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Grand Canyon Education · $200M total across 1 segment · Q2 2022

  • Service Revenue
    $200M-0.9%

Forward guidance

Grand Canyon Education provided the following outlook for 2022: Q3 2022: Service revenue of between $207.3 million and $209.3 million; As Adjusted Operating Margin of between 16.1% and 16.3%; Effective tax rate of 18.4%; As Adjusted Diluted EPS of between $0.86 and $0.88 using 31.6 million diluted shares. Q4 2022: Service revenue of between $252.0 million and $256.0 million; As Adjusted Operating Margin of between 34.7% and 34.8%; Effective tax rate of 22.9%; As Adjusted Diluted EPS of between $2.14 and $2.18 using 31.5 million diluted shares. Full Year 2022: Service revenue of between $903.2 million and $909.2 million; As Adjusted Operating Margin of between 26.2% and 26.3%; Effective tax rate of 23.4%; As Adjusted Diluted EPS of between $5.60 and $5.66 using 32.5 million diluted shares

Tailwinds

  • Service revenue of between $207.3 million and $209.3 million in Q3 2022
  • As Adjusted Operating Margin of between 16.1% and 16.3% in Q3 2022
  • Effective tax rate of 18.4% in Q3 2022
  • As Adjusted Diluted EPS of between $0.86 and $0.88 using 31.6 million diluted shares in Q3 2022
  • Full Year 2022 As Adjusted Diluted EPS of between $5.60 and $5.66 using 32.5 million diluted shares

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+3.3%

Avg return

Earnings day

+2.4%

Avg return

5 days after

+2.5%

Avg return

30 days after

65%

42 / 65 earnings

Positive

+21.9%

Q2 2012

Best reaction

-16.0%

Q1 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%-2.7%-11.4%
Q4 2025-7.9%-6.5%-3.2%
Q3 2025-6.2%-5.2%-14.0%
Q1 2025+4.5%+5.5%+4.7%
Q4 2024+1.8%-3.6%-8.3%
Q3 2024+17.0%+22.0%+20.1%
Q2 2024-3.5%-2.6%-3.5%
Q1 2024+6.3%+7.6%+4.2%
Q4 2023+0.5%-1.4%-0.3%
Q3 2023+14.2%+13.8%+14.7%
Q2 2023+5.5%+1.5%+9.1%
Q1 2023-3.7%-6.6%-12.7%
Q4 2022+1.6%+3.0%-5.9%
Q3 2022+16.4%+17.3%+29.5%
Q2 2022-12.2%-14.0%-15.9%
Q1 2022+3.9%-3.0%-6.5%
Q4 2021+2.4%+5.8%+21.9%
Q3 2021-9.4%-9.5%-14.1%
Q2 2021-2.5%-2.7%-0.8%
Q1 2021-16.0%-11.7%-16.3%
Q4 2020+2.1%+2.7%+5.4%
Q3 2020-0.4%+2.3%+4.9%
Q2 2020+12.0%+10.3%+3.0%
Q1 2020+7.2%+9.2%+16.5%
Q4 2019-4.3%-6.2%-29.2%
Q3 2019-4.1%-4.1%-3.5%
Q2 2019+5.7%+8.5%-0.1%
Q1 2019-4.2%-1.8%+7.1%
Q4 2018+21.7%+19.8%+17.5%
Q3 2018-0.9%-2.8%-12.0%
Q2 2018-3.2%-2.7%-0.8%
Q1 2018+6.9%+5.4%+9.9%
Q4 2017+9.0%+10.6%+12.9%
Q3 2017-0.7%-0.7%+4.0%
Q2 2017+8.8%+10.2%+11.5%
Q1 2017+4.2%+6.0%+7.8%
Q4 2016+5.8%+5.0%+19.8%
Q3 2016+8.6%+11.2%+31.7%
Q2 2016+4.9%+4.8%-0.3%
Q1 2016-4.6%
Q4 2015+12.0%
Q3 2015+7.2%
Q2 2015-5.3%
Q1 2015+1.2%
Q4 2014+5.2%
Q3 2014+9.3%
Q2 2014-4.2%
Q1 2014+6.9%
Q4 2013+2.5%
Q3 2013+11.3%
Q2 2013-4.7%
Q1 2013+13.4%
Q4 2012+5.4%
Q3 2012+12.3%
Q2 2012+21.9%
Q1 2012+10.3%
Q4 2011-3.0%
Q4 2009-3.0%
Q3 2011-3.0%
Q3 2010-3.0%
Q2 2010+8.8%
Q2 2011+8.8%
Q1 2010+5.3%
Q4 2010+5.3%
Q1 2011+5.3%

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