NASDAQ$PRDO

Perdoceo Education Corporation · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported an increase in revenue and operating income, driven by enrollment growth and operating efficiency.

Perdoceo Education Corporation reported an 8.9% increase in revenue to $158.5 million and a 58.6% increase in operating income to $32.0 million for the fourth quarter of 2019. Earnings per diluted share were $0.38, compared to $0.20 in the prior year quarter. Adjusted earnings per diluted share were $0.33, compared to $0.30 in the prior year quarter. Total student enrollments increased by 6.4% year over year.

  • Revenue increased by 8.9 percent to $158.5 million.
  • Operating income increased 58.6 percent to $32.0 million.
  • Earnings per diluted share of $0.38 compared to earnings per diluted share of $0.20.
  • CTU and AIU's total student enrollments increased 4.4 percent and 10.2 percent, respectively.

Headline financials

Total Revenue

$158M

Previous: $146M+8.9%
EPS (adj)

$0.33

Previous: $0.30+10.0%
CTU Enrollment Growth

4.4%

No prior period
AIUS Enrollment Growth

10.2%

No prior period
Net Income

$27.5M

Previous: $14.1M+95.6%
Operating Income

$32M

Previous: $20.2M+58.6%
Gross Profit

$134M

Previous: $120M+11.2%
Cash & Equivalents

$294M

Previous: $32.4M+808.2%
Total Assets

$599M

Previous: $482M+24.2%
Stock-Based Comp

$5.35M

Previous: $1.47M+263.8%

Revenue & EPS history

Perdoceo · Revenue · Quarterly

$158M

Q4 2019+8.9%vs Q4 2018
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Perdoceo · $158M total across 2 segments · Q4 2019

  • CTU
    $103M
  • AIUS
    $55.8M

Forward guidance

The Company is providing the following outlook, subject to the key assumptions identified below. This outlook reflects the Company’s expectation of growth in new and total student enrollments at both universities for 2020.

Tailwinds

  • Expects growth in CTU’s new student enrollments as compared to the prior year quarter.
  • AIU’s first quarter new student enrollments are expected to decline due to 31 percent less enrollment days in the first quarter of 2020 as compared to the prior year quarter
  • Decline is expected to be more than offset with new student enrollment growth in the second quarter which has approximately 50 percent more enrollment days than the prior year quarter.
  • AIU’s enrollment days for the third and fourth quarters of 2020 will be relatively comparable to the respective prior year periods.
  • Operating income, adjusted operating income, earnings per share, adjusted earnings per share and enrollment outlook provided above for 2020 are based on the key assumptions and factors

Headwinds

  • 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 within the University Group
  • No material changes in the current legal or regulatory environment, and excludes legal and regulatory liabilities and other related impacts which are not probable and estimable at this time, and any impact of new or proposed regulations, including the “borrower defense to repayment” 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
  • Any future impact from the Company’s stock repurchase program is excluded, and (viii) any results of operations from Trident University are 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 Q4 2019

Historical avgQ4 2019

+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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