NASDAQ$PRDO

Perdoceo Education Corporation · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported a decrease in revenue and operating income, but adjusted operating income remained almost flat compared to the prior year quarter.

Perdoceo Education Corporation reported a decrease in revenue for Q4 2021, primarily driven by a decrease in total student enrollments. Operating income also decreased, while adjusted operating income saw a slight increase. The company's total student enrollments decreased, with CTU experiencing a slight increase offset by a decrease within the AIU System. The company ended the year with a strong cash position.

  • Revenue decreased by 6.6 percent to $159.9 million.
  • Operating income decreased by 4.5 percent to $34.6 million.
  • Adjusted operating income increased by 1.7 percent to $42.0 million.
  • Earnings per diluted share was $0.35, while adjusted earnings per diluted share was $0.40.

Headline financials

Total Revenue

$160M

Previous: $171M-6.6%
EPS (adj)

$0.40

Previous: $0.39+2.6%
Net Income

$24.5M

Previous: $27.1M-9.6%
Operating Income

$34.6M

Previous: $36.2M-4.5%
Gross Profit

$135M

Previous: $143M-5.6%
Cash & Equivalents

$499M

Previous: $410M+21.7%
Total Assets

$847M

Previous: $722M+17.5%
Stock-Based Comp

$3.69M

Previous: $3.64M+1.1%

Revenue & EPS history

Perdoceo · Revenue · Quarterly

$160M

Q4 2021-6.6%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Perdoceo · $96.1M total across 2 segments · Q4 2021

  • CTU
    $95.9M-6.7%
  • Corporate and Other
    $243K-27.7%

Forward guidance

The Company is providing the following 2022 outlook, subject to the key assumptions identified below.

Tailwinds

  • Prospective student interest in the Company’s programs remains consistent with recent experience.
  • 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.
  • No significant future operating or financial impacts relating to the COVID-19 pandemic.
  • Earnings per diluted share outlook assumes an effective income tax rate of approximately 27.0% for the first quarter and 26.0% for the full year.

Headwinds

  • Operating income, which is the most directly comparable GAAP measure to adjusted operating income, and 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.
  • 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.
  • Any future impact from the Company’s stock repurchase program is excluded.
  • Legal fee expense associated with (i) responses to the Department relating to borrower defense to repayment applications from former students, and (ii) acquisition efforts.

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 2021

Historical avgQ4 2021

+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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