NASDAQ$LOPE

Grand Canyon Education Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Second quarter results for 2023 were reported, demonstrating growth in service revenue and net income.

Grand Canyon Education reported an increase in service revenue and net income for the second quarter of 2023. Service revenue increased by 5.4% year-over-year, driven by higher GCU enrollments and revenue per student. Net income also saw a significant increase of 13.3% compared to the same period in the previous year.

  • Service revenue increased by 5.4% to $210.6 million due to growth in GCU enrollments and revenue per student.
  • Partner enrollments reached 99,526, with GCU enrollments increasing by 4.1% to 95,972.
  • Operating income rose to $35.4 million, with an operating margin of 16.8%.
  • Net income increased by 13.3% to $29.0 million, with diluted net income per share at $0.96.

Headline financials

Total Revenue

$211M

Previous: $200M+5.4%
EPS (adj)

$1.01

Previous: $0.85+18.8%
University Partner Enrollments

99.5K

Previous: 96.0K+3.6%
Off-Campus Enrollments

3.9K

Previous: 4.1K-5.2%
Free Cash Flow

$29M

Previous: $25.6M+13.3%
Net Income

$29M

Previous: $25.6M+13.3%
Operating Income

$35.4M

Previous: $33.8M+4.7%
Gross Profit

$99.2M

Previous: -$5M+2084.6%
Cash & Equivalents

$143M

Previous: $139M+2.5%
Total Assets

$846M

Previous: $787M+7.5%

Revenue & EPS history

Grand Canyon Education · Revenue · Quarterly

$211M

Q2 2023+5.4%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Grand Canyon Education · $211M total across 1 segment · Q2 2023

  • Service Revenue
    $211M+5.4%

Forward guidance

Grand Canyon Education provided outlook for Q3 2023, Q4 2023 and Full Year 2023

Tailwinds

  • Q3 2023: Service revenue of between $218.5 million and $220.5 million
  • Q3 2023: Operating margin of between 16.0% and 16.7%
  • Q3 2023: Effective tax rate of 18.6%
  • Q3 2023: Diluted EPS of between $0.99 and $1.04
  • Q3 2023: Non-GAAP diluted income per share of between $1.05 and $1.10

Headwinds

  • Q4 2023: Service revenue of between $269.5 million and $274.5 million
  • Q4 2023: Operating margin of between 34.1% and 35.3%
  • Q4 2023: Effective tax rate of 21.3%
  • Q4 2023: Diluted EPS of between $2.48 and $2.61
  • Q4 2023: Non-GAAP diluted income per share of between $2.54 and $2.67

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 2023

Historical avgQ2 2023

+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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