NASDAQ$PRDO

Perdoceo Education Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported a decrease in revenue due to enrollment reduction at AIUS, while net income increased.

Perdoceo Education Corporation reported a decrease in revenue for the fourth quarter of 2023, primarily due to enrollment declines at AIUS. However, net income saw an increase compared to the prior year quarter. The company's focus remains on student retention and engagement.

  • Revenue decreased by 16.0% to $147.9 million, driven by enrollment reduction at AIUS.
  • Operating income decreased by 29.7% to $15.9 million.
  • Earnings per diluted share increased to $0.26 from $0.23.
  • Net income increased to $17.2 million compared to $16.0 million for the prior year quarter.

Headline financials

Total Revenue

$148M

Previous: $176M-16.0%
EPS (adj)

$0.27

Previous: $0.31-12.9%
Capital Expenditures

-$1.61M

No prior period
Free Cash Flow

$11.6M

No prior period
Net Income

$17.2M

Previous: $16M+7.4%
Operating Income

$15.9M

Previous: $22.7M-29.8%
Gross Profit

$118M

Previous: $145M-18.8%
Stock-Based Comp

$1.43M

Previous: $2.52M-43.3%

Revenue & EPS history

Perdoceo · Revenue · Quarterly

$148M

Q4 2023-16%vs Q4 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 provided the 2024 financial outlook, subject to key assumptions.

Tailwinds

  • Prospective student interest in the Company’s programs and trends in student retention and engagement remain consistent with management’s recent experiences.
  • No significant impact of new or proposed regulations, or new interpretations of existing 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.
  • Earnings per diluted share outlook assumes an effective income tax rate of approximately 25.5% for the first quarter and approximately 26% for the full year.

Headwinds

  • The operating income, adjusted operating income, earnings per share and adjusted earnings per share outlook provided above for 2024 are based on key assumptions and factors.
  • 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.
  • No significant impact from the further delays by the Department to its implementation of a simplified FAFSA required by the FAFSA Simplification Act and the related delay of providing institutions with students' relevant aid eligibility and award information.
  • Excludes any future impact from the Company’s stock repurchase program.

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 2023

Historical avgQ4 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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