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Education Services Stocks Q2 Results: Benchmarking Perdoceo Education (NASDAQ:PRDO)


Max Juang /
2024/09/11 3:43 am EDT

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the education services industry, including Perdoceo Education (NASDAQ:PRDO) and its peers.

A whole industry has emerged to address the problem of rising education costs, offering consumers alternatives to traditional education paths such as four-year colleges. These alternative paths, which may include online courses or flexible schedules, make education more accessible to those with work or child-rearing obligations. However, some have run into issues around the value of the degrees and certifications they provide and whether customers are getting a good deal. Those who don’t prove their value could struggle to retain students, or even worse, invite the heavy hand of regulation.

The 8 education services stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 0.7% below.

Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and education services stocks have had a rough stretch. On average, share prices are down 5.7% since the latest earnings results.

Perdoceo Education (NASDAQ:PRDO)

Formerly known as Career Education Corporation, Perdoceo Education (NASDAQ:PRDO) is an educational services company that specializes in postsecondary education.

Perdoceo Education reported revenues of $166.7 million, down 10.6% year on year. This print exceeded analysts’ expectations by 3.6%. Despite the top-line beat, it was still a mixed quarter for the company with a narrow beat of analysts’ earnings estimates.

Perdoceo Education Total Revenue

Perdoceo Education scored the biggest analyst estimates beat but had the slowest revenue growth of the whole group. Even though it had a great quarter relative to its peers, the market seems discontent with the results. The stock is down 6.4% since reporting and currently trades at $16.41.

Is now the time to buy Perdoceo Education? Access our full analysis of the earnings results here, it’s free.

Best Q2: Universal Technical Institute (NYSE:UTI)

Founded in 1965, Universal Technical Institute (NYSE: UTI) is a leading provider of technical training programs, specializing in automotive, diesel, collision repair, motorcycle, and marine technicians.

Universal Technical Institute reported revenues of $177.5 million, up 15.8% year on year, outperforming analysts’ expectations by 2.7%. The business had a very strong quarter with an impressive beat of analysts’ earnings estimates and a decent beat of analysts’ operating margin estimates.

Universal Technical Institute Total Revenue

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 6.4% since reporting. It currently trades at $16.41.

Is now the time to buy Universal Technical Institute? Access our full analysis of the earnings results here, it’s free.

Lincoln Educational (NASDAQ:LINC)

Established in 1946, Lincoln Educational (NASDAQ:LINC) is a provider of specialized technical training in the United States, offering career-oriented programs to provide practical skills required in the workforce.

Lincoln Educational reported revenues of $102.9 million, up 16.1% year on year, exceeding analysts’ expectations by 2.3%. Still, it was a slower quarter as it posted a miss of analysts’ earnings estimates.

The stock is flat since the results and currently trades at $11.76.

Read our full analysis of Lincoln Educational’s results here.

Bright Horizons (NYSE:BFAM)

Founded in 1986, Bright Horizons (NYSE:BFAM) is a global provider of child care, early education, and workforce support solutions.

Bright Horizons reported revenues of $670.1 million, up 11.1% year on year. This print was in line with analysts’ expectations. It was a strong quarter as it also logged an impressive beat of analysts’ operating margin estimates and a solid beat of analysts’ earnings estimates.

Bright Horizons had the weakest performance against analyst estimates among its peers. The stock is up 17.3% since reporting and currently trades at $138.67.

Read our full, actionable report on Bright Horizons here, it’s free.

Adtalem (NYSE:ATGE)

Formerly known as DeVry Education Group, Adtalem Global Education (NYSE:ATGE) is a global provider of workforce solutions and educational services.

Adtalem reported revenues of $409.9 million, up 12.4% year on year. This print beat analysts’ expectations by 2.8%. It was a strong quarter as it also logged a decent beat of analysts’ operating margin estimates and full-year revenue guidance beating analysts’ expectations.

Adtalem achieved the highest full-year guidance raise among its peers. The stock is down 6.7% since reporting and currently trades at $69.64.

Read our full, actionable report on Adtalem here, it’s free.

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