NASDAQ$PRDO

Perdoceo Education Corporation · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported an increase in revenue and operating income, driven by enrollment growth.

Perdoceo Education Corporation reported an 8.3% increase in revenue to $171.0 million and a 24.5% increase in operating income to $37.3 million for the quarter ended March 31, 2020. The growth was supported by total student enrollment growth across both universities. The company ended the quarter with $285.6 million in cash, cash equivalents, restricted cash and available-for-sale short-term investments.

  • Revenue increased by 8.3 percent to $171.0 million.
  • Operating income increased 24.5 percent to $37.3 million.
  • Earnings per diluted share of $0.41 as compared to earnings per diluted share of $0.35.
  • Ended the quarter with $285.6 million in cash, cash equivalents, restricted cash and available-for-sale short-term investments.

Headline financials

Total Revenue

$171M

Previous: $158M+8.3%
EPS (adj)

$0.42

Previous: $0.36+16.7%
Capital Expenditures

-$1.02M

Previous: -$479K-111.9%
Free Cash Flow

$28.1M

Previous: $24.3M+15.5%
Net Income

$29.1M

Previous: $24.8M+17.4%
Operating Income

$37.3M

Previous: $30M+24.5%
Gross Profit

$788K

Previous: $1.11M-28.9%
Cash & Equivalents

$286M

Previous: $38.8M+636.1%
Total Assets

$607M

Previous: $530M+14.4%
Stock-Based Comp

$3.21M

Previous: $1.37M+134.6%

Revenue & EPS history

Perdoceo · Revenue · Quarterly

$171M

Q1 2020+8.3%vs Q1 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Perdoceo · $171M total across 3 segments · Q1 2020

  • CTU
    $104M
  • AIUS
    $67.4M
  • Corporate and Other
    $10K

Forward guidance

The Company is providing the following outlook, subject to the key assumptions identified below. The outlook now incorporates the Trident acquisition, including known acquisition and restructuring costs, as well as known costs associated with COVID-19, such as transitioning our students and employees to a remote environment.

Tailwinds

  • Company expects growth in new and total student enrollments at both universities for the full year of 2020.
  • Company expects growth in CTU’s new student enrollments as compared to the prior year quarter.
  • AIU’s second quarter new student enrollments are expected to show significant growth due to 50 percent more enrollment days in the second quarter of 2020 as compared to the prior year quarter, as well as the Trident acquisition.
  • Increase is expected to more than offset the decline in new student enrollments from the first quarter of 2020 such that on a combined basis AIU is expected to show growth for the first half of 2020, even after excluding the positive impact from the Trident acquisition.
  • Company expects AIU’s enrollment days for the third and fourth quarters of 2020 to be relatively comparable to the respective prior year periods.

Headwinds

  • Prospective student interest in the Company’s programs remains consistent with recent experience.
  • Initiatives and investments in student-serving operations continue to positively impact enrollment trends.
  • No material changes in the current legal or regulatory environment, and excludes legal and regulatory liabilities and other related impacts which are not probable and estimable at this time, and any impact of new or proposed regulations, including the “borrower defense to repayment” regulations.
  • No significant operating impacts from the settlements with the U.S. Federal Trade Commission and state attorneys general or other legal or regulatory matters, including the March 2020 letter from the U.S. Department of Veterans Affairs (the “VA”) regarding the potential disapproval, for purposes of educational assistance programs administered by the VA, of the enrollment of individuals at the Company’s institutions if the Company fails to remedy the deficiency identified in the letter.
  • No significant operating or financial impacts from the COVID-19 pandemic beyond the known costs which have been incorporated in the outlook.

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 Q1 2020

Historical avgQ1 2020

+0.9%

Avg return

Earnings day

+4.3%

Avg return

5 days after

+4.4%

Avg return

30 days after

49%

34 / 69 earnings

Positive

+31.7%

Q1 2024

Best reaction

-30.4%

Q1 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.9%+1.4%-0.5%
Q4 2025+4.2%+5.8%+9.6%
Q3 2025-1.9%-1.0%-8.9%
Q1 2025+22.3%+20.6%+35.2%
Q4 2024-5.9%-9.3%-14.7%
Q3 2024+9.9%+4.4%+7.4%
Q2 2024-2.6%-9.1%-11.1%
Q1 2024+31.7%+33.1%+23.0%
Q4 2023-0.7%+3.6%+4.4%
Q3 2023-3.6%-7.2%-3.7%
Q2 2023+14.9%+20.7%+25.5%
Q1 2023-5.1%-3.0%+0.2%
Q4 2022-2.1%-0.6%-6.5%
Q3 2022+16.0%+24.2%+20.5%
Q2 2022-6.3%-4.8%-15.0%
Q1 2022-3.7%-4.3%-0.5%
Q4 2021+3.1%+5.4%+16.6%
Q3 2021+0.7%-4.2%-4.6%
Q2 2021-1.5%-4.0%-8.0%
Q1 2021+0.7%-1.0%+4.4%
Q4 2020-4.2%-2.2%-7.4%
Q3 2020-10.5%-5.6%-0.2%
Q2 2020+4.0%+14.4%-5.2%
Q1 2020+15.4%+14.6%+31.6%
Q4 2019+0.3%-5.5%-50.7%
Q3 2019+5.8%+8.5%+11.7%
Q2 2019+12.8%+13.6%+6.5%
Q1 2019+7.2%+2.9%+11.3%
Q4 2018+18.0%+20.5%+15.1%
Q3 2018-6.7%-9.3%-6.2%
Q2 2018-4.3%-8.4%-13.3%
Q1 2018+13.5%+12.0%+23.1%
Q4 2017+16.8%+16.6%+12.9%
Q3 2017+13.8%+17.6%+24.9%
Q2 2017+2.3%+6.4%+14.6%
Q1 2017+9.2%+2.1%-0.9%
Q4 2016-12.4%-12.3%-8.8%
Q3 2016-4.1%+3.3%+43.8%
Q2 2016+2.8%+7.0%-5.4%
Q1 2016+12.2%
Q4 2015+29.4%
Q3 2015+8.0%
Q2 2015+29.6%
Q1 2015+17.0%
Q4 2014+12.4%
Q3 2014-7.3%
Q2 2014-1.1%
Q1 2014-30.4%
Q4 2013+10.8%
Q3 2013-18.6%
Q2 2013-1.7%
Q1 2013+4.9%
Q4 2012-11.8%
Q3 2012-18.2%
Q2 2012-19.8%
Q1 2012-11.2%
Q4 2008-23.7%
Q4 2011-23.7%
Q3 2008-10.0%
Q2 2008-15.6%
Q1 2008+1.6%
Q4 2010-6.6%
Q3 2009-2.3%
Q3 2010-2.3%
Q2 2010-7.7%
Q2 2009-7.7%
Q1 2010+1.4%
Q4 2009+1.4%
Q1 2009+1.4%

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