NASDAQ$PRDO

Perdoceo Education Corporation · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Perdoceo Education Corporation reported an increase in revenue and a decrease in operating income and earnings per share for the fourth quarter of 2022.

Perdoceo Education Corporation reported a 10.2% increase in revenue to $176.1 million for the fourth quarter of 2022, driven by growth at both CTU and AIUS. However, operating income decreased by 34.4% to $22.7 million, and earnings per diluted share decreased to $0.23, compared to the prior year quarter.

  • Revenue increased by 10.2% to $176.1 million, with CTU increasing by 13.1% and AIUS increasing by 5.9%.
  • Operating income decreased by 34.4% to $22.7 million, while adjusted operating income decreased 22.9% to $32.4 million.
  • Earnings per diluted share was $0.23, compared to $0.35 in the prior year quarter.
  • Total student enrollments decreased by 3.0%, with a 2.0% increase at CTU offset by a 10.8% decrease at AIUS.

Headline financials

Total Revenue

$176M

Previous: $160M+10.2%
EPS (adj)

$0.31

Previous: $0.40-22.5%
Operating Margin

12.9%

No prior period
Net Income

$16M

Previous: $24.5M-34.6%
Operating Income

$22.7M

Previous: $34.6M-34.3%
Gross Profit

$145M

Previous: $135M+7.7%
Cash & Equivalents

$518M

Previous: $499M+3.8%
Total Assets

$957M

Previous: $847M+13.0%
Stock-Based Comp

$2.52M

Previous: $3.69M-31.7%

Revenue & EPS history

Perdoceo · Revenue · Quarterly

$176M

Q4 2022+10.2%vs Q4 2021
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Perdoceo · $109M total across 2 segments · Q4 2022

  • CTU
    $108M+13.1%
  • Corporate and Other
    $254K+4.5%

Forward guidance

The Company is providing the following 2023 outlook, subject to the key assumptions identified below.

Tailwinds

  • Operating Income $41.3M - $43.3M
  • Depreciation and amortization $5.1M
  • Legal fee expense related to certain matters $4.6M
  • Adjusted Operating Income $51.0M - $53.0M
  • Earnings Per Diluted Share $0.47 - $0.49

Headwinds

  • 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, including recent Department negotiated rulemaking initiatives, or other adverse changes in the legal or regulatory environment, which may require operational changes in the way the Company’s academic institutions enroll, support and educate current and prospective students, among other impacts
  • 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 student loan initiatives implemented by the current administration remains consistent with management's estimates
  • earnings per diluted share outlook assumes an effective income tax rate of approximately 26.0% for both the first quarter and the full year

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 2022

Historical avgQ4 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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