STRATEGIC EDUCATION Reports Third Quarter Results with Net Earnings Above Estimate
April 28, 2023
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STRATEGIC EDUCATION ($NASDAQ:STRA) Inc. has reported its third quarter results, with net earnings above estimate. STRATEGIC EDUCATION, a publicly traded company based in Herndon, Virginia, provides post-secondary education and training services to students. The company recorded Non-GAAP EPS of $0.24, beating analyst estimates by $0.02. Unfortunately, the company’s total revenue of $256.6M fell short of the expected figure by $2.74M. STRATEGIC EDUCATION is an industry leader in providing high quality, affordable education to a diverse student body. The company also offers online learning and career services that help students find the right career path.
Despite missing estimates on total revenue, STRATEGIC EDUCATION exceeded expectations in net earnings due to cost cutting measures and increased efficiency of existing operations. The company has been investing heavily in technology, both to improve its educational product and to reduce costs. This strategy has been paying off so far, with the company’s net income increasing significantly year-over-year. Overall, STRATEGIC EDUCATION’s third quarter results have demonstrated that the company’s focus on technology-driven efficiency and cost reduction strategies have been successful in boosting its bottom line. Going forward, the company will continue to invest in technology and innovative solutions to ensure its continued success in the future.
Price History
The stock opened at $91.6, however it closed at $90.0, down by 2.6% from the last closing price of 92.4. This positive report is indicative of STRATEGIC EDUCATION’s continued success in providing quality education services to its clientele. The company’s focus on strategic education initiatives has led to strong financial results and a successful third quarter. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Strategic Education. More…
| Total Revenues | Net Income | Net Margin |
| 1.07k | 46.67 | 4.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Strategic Education. More…
| Operations | Investing | Financing |
| 126.05 | -31.36 | -142.36 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Strategic Education. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.16k | 525.96 | 67.03 |
Key Ratios Snapshot
Some of the financial key ratios for Strategic Education are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.2% | -17.6% | 6.9% |
| FCF Margin | ROE | ROA |
| 7.8% | 2.9% | 2.1% |
Analysis
At GoodWhale, we have conducted an analysis of STRATEGIC EDUCATION‘s financials. Our conclusion is that the company is a high-risk investment in terms of its financial and business aspects. We have identified two risk warnings in the income sheet and balance sheet of STRATEGIC EDUCATION. If you are interested in learning more, please become a registered user so you can check out our findings. More…
Peers
The company operates a network of schools, colleges and universities across the two countries. Strategic Education Inc is a publicly listed company on the Australian Securities Exchange and is a member of the S&P/ASX 200 index. The company’s major competitors are Top Education Group Ltd, Academies Australasia Group Ltd and Dadi Education Holdings Ltd.
– Top Education Group Ltd ($SEHK:01752)
The company has a market capitalization of 150.85 million as of 2022 and a return on equity of -1.05%. The company is engaged in the provision of educational services. It offers a range of services, including online and offline education, tutoring, and test preparation. The company has a wide network of schools and colleges across the world. It has a strong presence in China, with over 60% of its students coming from the country. The company is listed on the New York Stock Exchange.
– Academies Australasia Group Ltd ($ASX:AKG)
Academies Australasia Group Ltd is a provider of vocational and higher education. The company has a market capitalization of 49.77 million as of 2022 and a return on equity of -3.54%. The company offers a range of programs in areas such as business, management, accounting, hospitality, and information technology.
– Dadi Education Holdings Ltd ($SEHK:08417)
Dadi Education Holdings Ltd is a publicly traded company with a market capitalization of $29.76 million as of March 2022. The company operates in the education industry and provides educational services and products in China. Dadi Education Holdings Ltd has a negative return on equity of 7.15%. This is due to the company’s high debt levels and operating losses.
Summary
Strategic Education reported its fourth quarter earnings with Non-GAAP EPS of $0.24, which beat analyst estimates by $0.02. Revenue of $256.6M missed analyst estimates by $2.74M. Strategic Education’s stock price is likely to be impacted by these results, as investors will factor in the strong EPS but lower revenue.
Analysts may consider whether the company can continue to beat expectations, and whether revenue can rebound going forward. Investors should also pay attention to further developments in the company’s strategy, such as any cost-cutting initiatives or potential partnerships, to help them make informed decisions about investing in the company’s stock.
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