Strategic Education Q2 revenue beats estimates on education technology growth

Overview

• U.S. education services firm's Q2 revenue rose 4.9%, beating analyst expectations

• Adjusted EPS for Q2 missed analyst expectations

• Company repurchased 420,624 shares for $32.8 mln during the quarter

Outlook

• Company did not provide specific guidance for the current quarter or full year

Result Drivers

• EDUCATION TECHNOLOGY GROWTH - ETS segment revenue rose over 15% YOY, driven by higher Sophia Learning subscriptions, employer-affiliated enrollment, and Workforce Edge partnerships

• HIGHER REVENUE PER STUDENT - U.S. Higher Education revenue rose 2.3% YOY, supported by higher revenue per student and growth in healthcare program enrollment

• REGULATORY IMPACTS IN AUSTRALIA - Lower international enrollment in Australia/New Zealand due to regulatory changes offset by higher domestic enrollment and currency gains; $13.9 mln reserve recorded for compliance matter

Company press release: ID:nBwbWWPspa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the miscellaneous educational service providers peer group is "buy"

• Wall Street's median 12-month price target for Strategic Education Inc is $86.00, about 5.7% above its July 28 closing price of $81.39

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)