NASDAQ$PRDO

Perdoceo Education Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported an increase in revenue and operating income, driven by improvements in student retention and engagement.

Perdoceo Education Corporation reported strong second-quarter results with an 11.3% increase in revenue to $186.6 million and a 41.7% increase in operating income to $48.1 million. Earnings per diluted share rose to $0.80, and the company declared an inaugural quarterly dividend of $0.11 per share.

  • Revenue increased by 11.3% to $186.6 million, primarily driven by an 18.7% increase at CTU.
  • Operating income increased by 41.7% to $48.1 million.
  • Earnings per diluted share were $0.80, compared to $0.37 in the prior year quarter.
  • The company declared an inaugural quarterly dividend of $0.11 per share.

Headline financials

Total Revenue

$187M

Previous: $168M+11.3%
EPS (adj)

$0.61

Previous: $0.42+45.2%
Total Student Enrollments

38.0K

Previous: 40.1K-5.2%
Capital Expenditures

-$3.61M

Previous: -$6.77M+46.6%
Free Cash Flow

$51.1M

Previous: $19M+168.7%
Net Income

$54.7M

Previous: $25.8M+112.2%
Operating Income

$48.1M

Previous: $33.9M+41.7%
Gross Profit

$189K

Previous: $269K-29.7%
Cash & Equivalents

$578M

Previous: $149M+288.6%
Total Assets

$1.01B

Previous: $856M+18.4%
Stock-Based Comp

$2.02M

Previous: $1.9M+6.4%

Revenue & EPS history

Perdoceo · Revenue · Quarterly

$187M

Q2 2023+11.3%vs Q2 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Perdoceo · $120M total across 2 segments · Q2 2023

  • CTU
    $119M+18.7%
  • Corporate and Other
    $210K-30.7%

Forward guidance

The company provided an outlook for the third quarter and full year, based on key assumptions including student interest, regulatory environment, and the impact of student aid initiatives.

Tailwinds

  • Operating income for the quarter ending September 30, 2023, is projected to be between $38.6 million and $40.6 million.
  • Adjusted operating income for the quarter ending September 30, 2023, is expected to be between $43.0 million and $45.0 million.
  • Earnings per diluted share for the quarter ending September 30, 2023, are projected to be between $0.46 and $0.48.
  • Adjusted earnings per diluted share for the quarter ending September 30, 2023, are expected to be between $0.48 and $0.50.
  • The company anticipates an effective income tax rate of approximately 28% for the third quarter and 27% for the full year.

Headwinds

  • The outlook is subject to prospective student interest in the Company’s programs and trends in student retention and engagement remain consistent with management’s estimates.
  • The outlook is subject to no significant impact of new or proposed regulations, including recent Department negotiated rulemaking initiatives, or other adverse changes in the legal or regulatory environment.
  • The outlook is subject to no significant operating impacts from the settlements with the U.S. Federal Trade Commission and state attorneys general or other legal or regulatory matters.
  • The outlook is subject to the impact from student aid initiatives implemented by the current administration remains consistent with management's estimates.
  • The outlook excludes any future impact from the Company’s stock repurchase program.

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

+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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