NASDAQ$PRDO

Perdoceo Education Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Revenue and operating income decreased while adjusted operating income also saw a decrease. Earnings per diluted share decreased, and total student enrollments experienced a slight decline.

Perdoceo Education Corporation reported a decrease in revenue for Q3 2022, with a 3.2% drop to $168.4 million. Operating income also decreased by 22.5% to $29.3 million. Earnings per diluted share decreased to $0.32 compared to $0.39 in the prior year quarter. Total student enrollments decreased by 2.1%. The company ended the quarter with $525.2 million in cash, cash equivalents, restricted cash, and available-for-sale short-term investments.

  • Revenue decreased by 3.2% to $168.4 million, with a 6.9% decrease at CTU partially offset by a 2.4% increase at AIUS.
  • Operating income decreased by 22.5% to $29.3 million, while adjusted operating income decreased by 16.5% to $38.7 million.
  • Earnings per diluted share was $0.32 as compared to $0.39, while adjusted earnings per diluted share was $0.39 as compared to $0.45.
  • Total student enrollments decreased by 2.1%, with CTU experiencing a 2.7% increase offset by a 9.5% decrease at AIUS.

Headline financials

Total Revenue

$168M

Previous: $174M-3.2%
EPS (adj)

$0.39

Previous: $0.45-13.3%
Total Student Enrollments

41.7K

Previous: 42.6K-2.1%
Capital Expenditures

-$9.11M

Previous: -$6.28M-45.1%
Free Cash Flow

$13M

Previous: $21.5M-39.7%
Net Income

$22.1M

Previous: $27.8M-20.5%
Operating Income

$29.3M

Previous: $37.9M-22.5%
Gross Profit

$271K

Previous: $263K+3.0%
Cash & Equivalents

$525M

Previous: $481M+9.2%
Total Assets

$899M

Previous: $836M+7.5%
Stock-Based Comp

$1.92M

Previous: $3.86M-50.3%

Revenue & EPS history

Perdoceo · Revenue · Quarterly

$168M

Q3 2022-3.2%vs Q3 2021
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Perdoceo · $97.8M total across 2 segments · Q3 2022

  • CTU
    $97.6M-6.9%
  • Corporate and Other
    $276K+5.3%

Forward guidance

The Company is raising its full year outlook, supported by improved student retention and engagement, and is also providing the following fourth quarter outlook, subject to the key assumptions identified below.

Tailwinds

  • Operating Income $17.3M - $20.3M
  • Depreciation and amortization $5.2M
  • Legal fee expense related to certain matters $3.0M
  • Adjusted Operating Income $25.5M - $28.5M
  • Earnings Per Diluted Share $0.22 - $0.25

Headwinds

  • prospective student interest in the Company’s programs and student retention remain consistent with management’s estimates
  • no significant impact of new or proposed regulations, including recent Department of Education negotiated rulemaking initiatives, or other adverse changes in the 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
  • earnings per diluted share outlook assumes an effective income tax rate of approximately 25.0% for the fourth quarter and 27.0% for the full year
  • 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 2022

Historical avgQ3 2022

+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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