Higher education company Perdoceo Education (NASDAQ:PRDO) will be reporting earnings tomorrow after the bell. Here’s what investors should know.
Perdoceo Education beat analysts’ revenue expectations by 3.6% last quarter, reporting revenues of $166.7 million, down 10.6% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ earnings estimates but underwhelming earnings guidance for the full year.
Is Perdoceo Education a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Perdoceo Education’s revenue to decline 8.5% year on year to $164.6 million, a reversal from the 6.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.53 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Perdoceo Education has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.4% on average.
Looking at Perdoceo Education’s peers in the education services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Adtalem delivered year-on-year revenue growth of 13.2%, beating analysts’ expectations by 5%, and Laureate Education reported revenues up 2%, topping estimates by 1.9%. Adtalem traded up 9.5% following the results while Laureate Education was also up 8.5%.
Read our full analysis of Adtalem’s results here and Laureate Education’s results here.
There has been positive sentiment among investors in the education services segment, with share prices up 6.4% on average over the last month. Perdoceo Education is up 16.4% during the same time and is heading into earnings with an average analyst price target of $30 (compared to the current share price of $24.93).
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