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Q1 Rundown: Perdoceo Education (NASDAQ:PRDO) Vs Other Education Services Stocks


Petr Huřťák /
2024/06/05 7:01 am EDT

Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at 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 Q1; on average, revenues beat analyst consensus estimates by 3.6%. while next quarter's revenue guidance was in line with consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but education services stocks have shown resilience, with share prices up 7.9% on average since the previous 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 $168.3 million, down 14% year on year, topping analysts' expectations by 3%. It was a very strong quarter for the company, with a decent beat of analysts' revenue and earnings estimates.

"First quarter results were better than expected, as both academic institutions continue to experience positive trends within student retention and engagement,” said Todd Nelson, President and Chief Executive Officer.

Perdoceo Education Total Revenue

Perdoceo Education delivered the slowest revenue growth of the whole group. The stock is up 20.2% since the results and currently trades at $22.05.

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

Best Q1: Strategic Education (NASDAQ:STRA)

Formed through the merger of Strayer Education and Capella Education in 2018, Strategic Education (NASDAQ:STRA) is a career-focused higher education provider.

Strategic Education reported revenues of $290.3 million, up 13.1% year on year, outperforming analysts' expectations by 5.8%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.

Strategic Education Total Revenue

The stock is up 14.1% since the results and currently trades at $114.83.

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

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 $622.7 million, up 12.5% year on year, exceeding analysts' expectations by 1.2%. It was an ok quarter for the company, with a decent beat of analysts' organic revenue estimates but full-year revenue guidance missing analysts' expectations.

Bright Horizons had the weakest full-year guidance update in the group. The stock is up 4.7% since the results and currently trades at $109.2.

Read our full analysis of Bright Horizons's results here.

Grand Canyon Education (NASDAQ:LOPE)

Founded in 1949, Grand Canyon Education (NASDAQ:LOPE) is an educational services provider known for its operation at Grand Canyon University.

Grand Canyon Education reported revenues of $274.7 million, up 9.8% year on year, in line with analysts' expectations. It was a decent quarter for the company, with optimistic earnings guidance for the next quarter.

Grand Canyon Education had the weakest performance against analyst estimates among its peers. The stock is up 4.1% since the results and currently trades at $145.74.

Read our full, actionable report on Grand Canyon Education here, it's free.

Laureate Education (NASDAQ:LAUR)

Founded in 1998 by Douglas L. Becker and based in Miami, Laureate Education (NASDAQ:LAUR) is a global network of higher education institutions.

Laureate Education reported revenues of $275.4 million, up 9.6% year on year, surpassing analysts' expectations by 2.3%. It was a mixed quarter for the company, with an impressive beat of analysts' revenue estimates but a miss of analysts' earnings estimates.

The stock is up 2.5% since the results and currently trades at $14.95.

Read our full, actionable report on Laureate Education here, it's free.

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