NASDAQ$PRDO

Perdoceo Education Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Perdoceo Education Corporation reported an increase in revenue and operating income, driven by growth at CTU, but a decrease in total student enrollments.

Perdoceo Education Corporation reported a 6.8% increase in revenue to $179.9 million and a 46.9% increase in operating income to $43.1 million for the third quarter of 2023, driven by a 23.6% increase at CTU. Earnings per diluted share increased to $0.62 from $0.32 in the prior year quarter. Total student enrollments decreased by 12.7%, with AIUS experiencing a 34.2% decrease, while CTU remained relatively flat. The company ended the quarter with $603.7 million in cash, cash equivalents, restricted cash and available-for-sale-short-term investments.

  • Revenue increased by 6.8% to $179.9 million, driven by a 23.6% increase at CTU.
  • Operating income increased by 46.9% to $43.1 million.
  • Earnings per diluted share increased to $0.62, compared to $0.32 in the prior year quarter.
  • Total student enrollments decreased by 12.7%, with a significant decrease at AIUS.

Headline financials

Total Revenue

$180M

Previous: $168M+6.8%
EPS (adj)

$0.64

Previous: $0.39+64.1%
Capital Expenditures

-$4.8M

Previous: -$9.11M+47.3%
Free Cash Flow

$36.5M

Previous: $13M+181.6%
Net Income

$41.3M

Previous: $22.1M+87.2%
Operating Income

$43.1M

Previous: $29.3M+46.9%
Gross Profit

$500K

Previous: $271K+84.5%
Cash & Equivalents

$604M

Previous: $525M+14.9%
Total Assets

$1.03B

Previous: $899M+14.1%
Stock-Based Comp

$2.34M

Previous: $1.92M+21.8%

Revenue & EPS history

Perdoceo · Revenue · Quarterly

$180M

Q3 2023+6.8%vs Q3 2022
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 has increased its full year outlook and is also providing the following fourth quarter 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 impact of new or proposed 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
  • The impact from federal student aid initiatives implemented by the current administration remains consistent with management's estimates
  • Excludes any future impact from the Company’s stock repurchase program.

Headwinds

  • Changes in the legal or regulatory environment may require further operational changes in the way the Company’s academic institutions enroll, support and educate current and prospective students
  • Settlements with the U.S. Federal Trade Commission and state attorneys general or other legal or regulatory matters
  • Impact from federal student aid initiatives implemented by the current administration
  • The Company’s stock repurchase program
  • Actual results could differ materially from these estimates

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 2023

Historical avgQ3 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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