NASDAQ$PRDO

Perdoceo Education Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Revenue increased due to enrollment growth at both CTU and AIU, and operating income also increased.

Perdoceo Education Corporation reported a 9.1% increase in revenue and an increase in operating income for the third quarter of 2020, driven by enrollment growth at both CTU and AIU. The company ended the quarter with $367.7 million in cash, cash equivalents, restricted cash and available-for-sale short-term investments.

  • Revenue increased by 9.1 percent to $169.1 million.
  • Operating income increased to $32.1 million as compared to $24.3 million.
  • Earnings per diluted share of $0.56 compared to earnings per diluted share of $0.25.
  • Total student enrollments at September 30, 2020 increased 17.2 percent.

Headline financials

Total Revenue

$169M

Previous: $155M+9.1%
EPS (adj)

$0.35

Previous: $0.33+6.1%
Capital Expenditures

-$7.48M

Previous: -$3.22M-132.3%
Free Cash Flow

$32.5M

Previous: $15M+116.2%
Net Income

$39.9M

Previous: $18.2M+119.0%
Operating Income

$32.1M

Previous: $24.3M+32.0%
Gross Profit

$494K

Previous: $1.08M-54.0%
Cash & Equivalents

$368M

Previous: $47.4M+675.6%
Total Assets

$684M

Previous: $599M+14.2%
Stock-Based Comp

$3.23M

Previous: $1.52M+113.2%

Revenue & EPS history

Perdoceo · Revenue · Quarterly

$169M

Q3 2020+9.1%vs Q3 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Perdoceo · $169M total across 2 segments · Q3 2020

  • CTU
    $99M
  • AIUS
    $70M

Forward guidance

The company is providing an updated outlook, expecting growth in new and total student enrollments at both CTU and AIU for the fourth quarter and full year 2020.

Tailwinds

  • 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.
  • No significant operating impacts from the settlements with the U.S. Federal Trade Commission and state attorneys general or other legal or regulatory matters.
  • No significant operating or financial impacts from the COVID-19 pandemic beyond known costs which have been incorporated in the outlook.

Headwinds

  • Operating income may not follow the same trends stated in the outlook because of adjustments made for certain significant and non-cash items.
  • Adjustments include lease expenses for vacated space offset with any sublease income as well as depreciation, amortization, asset impairment charges, significant restructuring charges and significant legal settlements.
  • The company excludes legal and regulatory liabilities and other related impacts which are not probable and estimable at this time.
  • The company excludes any impact of new or proposed regulations, including the “borrower defense to repayment” regulations
  • Any future impact from the Company’s stock repurchase program is excluded.

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 Q3 2020

Historical avgQ3 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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