NASDAQ$PRDO

Perdoceo Education Corporation · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported a decrease in revenue and operating income, but exceeded expectations due to high student retention and engagement.

Perdoceo Education Corporation reported a decrease in revenue by 10.6% to $166.7 million and a decrease in operating income by 4.3% to $46.0 million for the second quarter of 2024. However, the results exceeded expectations due to high levels of student retention and engagement at both academic institutions.

  • Total student enrollments increased by 4.2% with a 14.7% increase at CTU, offset by an 18.2% decrease at AIUS.
  • Revenue decreased by 10.6% to $166.7 million due to operational changes at AIUS.
  • Operating income decreased by 4.3% to $46.0 million, while adjusted operating income decreased by 7.8% to $50.9 million.
  • Earnings per diluted share were $0.57, compared to $0.80, and adjusted earnings per diluted share were $0.60, compared to $0.61.

Headline financials

Total Revenue

$167M

Previous: $187M-10.6%
EPS

$0.57

Previous: $0.61-6.6%
Capital Expenditures

-$2.02M

Previous: -$3.61M+44.0%
Free Cash Flow

$36.4M

Previous: $51.1M-28.7%
Net Income

$38.4M

Previous: $54.7M-29.7%
Operating Income

$46M

Previous: $48.1M-4.3%
Gross Profit

$189K

Previous: $189K+0.0%
Stock-Based Comp

$2.25M

Previous: $2.02M+11.3%

Revenue & EPS history

Perdoceo · Revenue · Quarterly

$167M

Q2 2024-10.6%vs Q2 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Perdoceo · $121M total across 2 segments · Q3 2023

  • CTU
    $121M+23.6%
  • Corporate and Other
    $145K-47.5%

Forward guidance

The Company is providing the following third quarter outlook along with a full year outlook, subject to the key assumptions identified below.

Tailwinds

  • Prospective student interest in the Company’s programs and trends in student retention and engagement remain consistent with management’s estimates.
  • No significant additional impact of new or proposed regulations, including recent Department negotiated rulemaking initiatives, or other adverse changes in the legal or regulatory environment, which may require further operational changes in the way the Company’s academic institutions enroll, support and educate current and prospective students, among other impacts.
  • 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 impact from student loan initiatives implemented by the current administration remains consistent with management's estimates.
  • Earnings per diluted share outlook assumes an effective income tax rate of approximately 28% for the third quarter and approximately 27% for the full year.

Headwinds

  • Operating income, which is the most directly comparable GAAP measure to adjusted operating income, and earnings per diluted share, which is the most directly comparable GAAP measure to adjusted earnings per diluted share, may not follow the same trends stated in the outlook above because of adjustments made for certain significant and non-cash items.
  • The operating income, adjusted operating income, earnings per share and adjusted earnings per share outlook provided above for 2024 are based on the following key assumptions and factors, among others.
  • Although these estimates and assumptions are based upon management’s good faith beliefs regarding current and future circumstances and actions that may be undertaken, actual results could differ materially from these estimates.
  • Decisions the Company makes in the future as it continues to evaluate diverse strategies to enhance stockholder value may impact the outlook provided above.
  • 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 2024

Historical avgQ2 2024

+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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