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Strategic Education, Inc. (STRA - Free Report) , or SEI, reported stellar results in second-quarter 2024. Its quarterly earnings and revenues topped the Zacks Consensus Estimate and increased year over year.
The quarterly results reflect solid growth across the company’s three reportable segments, attributable to continued enrollment growth in the U.S. Higher Education (“USHE”) segment, especially employer-affiliated enrollments, and total enrollment improvement in the Australia/New Zealand (ANZ) segment. Moreover, the Education Technology Services segment portrayed solid performance, mainly driven by the growth in Sophia Learning subscriptions.
However, shares of this education services holding company lost 5% on Jul 31 after its earnings release.
Inside the Headlines
SEI reported adjusted earnings per share (EPS) of $1.33, which topped the Zacks Consensus Estimate of $1.20 by 10.8% and rose impressively from the year-ago quarter’s 82 cents.
Total revenues of $312.3 million surpassed the consensus estimate of $304 million by 2.7% and increased 8.7% from the year-ago quarter’s level. On a constant-currency basis, revenues increased 8.9% to $313.4 million in the quarter.
Strategic Education Inc. Price, Consensus and EPS Surprise
USHE: This segment comprises Strayer and Capella Universities. The segment’s revenues increased 6.9% year over year to $216.6 million, backed by solid enrollment.
Student enrollment increased 8.4% from the year-ago quarter’s level to 87,077 students. FlexPath enrollment was 22% of USHE enrollment compared with 21% in the year-ago quarter.
During the quarter, the operating margin rose to 9.2% from 3.3% in the year-ago quarter.
Education Technology Services: This segment includes Employer Solutions, Workforce Edge and Sophia Learning. The segment’s quarterly revenues were $24.5 million, up 25.6% year over year, backed by solid growth in Sophia Learning subscriptions and employer-affiliated enrollment.
Sophia Learning’s average total subscribers increased 37% from the year-ago period’s levels. Employer-affiliated enrollment was 29.3% of USHE enrollment compared with 27.1% in the year-ago period.
Its operating margin was 40.9% in the reported quarter, up by a whopping 930 basis points (bps) from a year ago.
ANZ: This segment includes Torrens University, Think Education and Media Design School. The segment's revenues were $71.1 million, up 8.6% year over year, driven by higher enrollment and revenue-per-student. On a constant-currency basis, revenues rose 10.3% to $72.2 million year over year.
Student enrollment within ANZ rose 6.4% to 19,113 students during the reported quarter compared with the year-ago quarter.
The operating margin was 19.8%, down from 21.8% in the same period of 2023. On a constant-currency basis, the operating income margin was 19.9%, down from 21.8% in the year-ago period.
Operating Highlights
Adjusted operating income was up 61.4% to $43.9 million from $27.2 million in the year-ago quarter. The adjusted operating margin of 14.1% expanded a whopping 460 bps from the year-ago quarter.
Adjusted EBITDA in the reported quarter was $63.3 million, up from $45.4 million in the year-ago quarter.
Financial Details
As of Jun 30, 2024, SEI had cash and cash equivalents of $230.1 million, up from $168.5 million in 2023-end. Long-term debt at the second quarter of 2024-end was $61.3 million, slightly down from $61.4 million in 2023-end.
Cash provided by operating activities was $101.9 million in the first six months of 2024, up from $40.7 million in the comparable year-ago period. In the first half of 2024, capital expenditures were $19.9 million compared with $17.8 million a year ago.
In the second quarter of 2024, consolidated bad debt expense was 4.3% of revenue, slightly down from 4.4% for the same period in 2023.
Boyd Gaming Corporation (BYD - Free Report) reported second-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The company’s top line increased year over year.
Segment-wise, Boyd Gaming’s Las Vegas Locals market showed improvement from the first quarter. Its business in this segment achieved market share growth. Additionally, the company experienced strong growth in its Downtown Las Vegas operations and maintained stable performance in Midwest and South operations.
Hasbro, Inc. (HAS - Free Report) reported second-quarter fiscal 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Despite a year-over-year revenue decline, earnings increased on the back of a favorable business mix and improved operations.
For the full year, HAS expects total adjusted EBITDA between $975 million and $1.025 billion compared with the prior prediction of $925 million and $1 billion.
Mattel, Inc. (MAT - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top line missed the consensus estimate for the third straight quarter.
Mattel anticipates 2024 adjusted EPS between $1.35 and $1.45, compared with $1.23 in 2023. The Zacks Consensus Estimate for 2024 EPS is pegged at $1.40.
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Strategic Education (STRA) Q2 Earnings & Revenues Beat Estimates
Strategic Education, Inc. (STRA - Free Report) , or SEI, reported stellar results in second-quarter 2024. Its quarterly earnings and revenues topped the Zacks Consensus Estimate and increased year over year.
The quarterly results reflect solid growth across the company’s three reportable segments, attributable to continued enrollment growth in the U.S. Higher Education (“USHE”) segment, especially employer-affiliated enrollments, and total enrollment improvement in the Australia/New Zealand (ANZ) segment. Moreover, the Education Technology Services segment portrayed solid performance, mainly driven by the growth in Sophia Learning subscriptions.
However, shares of this education services holding company lost 5% on Jul 31 after its earnings release.
Inside the Headlines
SEI reported adjusted earnings per share (EPS) of $1.33, which topped the Zacks Consensus Estimate of $1.20 by 10.8% and rose impressively from the year-ago quarter’s 82 cents.
Total revenues of $312.3 million surpassed the consensus estimate of $304 million by 2.7% and increased 8.7% from the year-ago quarter’s level. On a constant-currency basis, revenues increased 8.9% to $313.4 million in the quarter.
Strategic Education Inc. Price, Consensus and EPS Surprise
Strategic Education Inc. price-consensus-eps-surprise-chart | Strategic Education Inc. Quote
Segmental Details
USHE: This segment comprises Strayer and Capella Universities. The segment’s revenues increased 6.9% year over year to $216.6 million, backed by solid enrollment.
Student enrollment increased 8.4% from the year-ago quarter’s level to 87,077 students. FlexPath enrollment was 22% of USHE enrollment compared with 21% in the year-ago quarter.
During the quarter, the operating margin rose to 9.2% from 3.3% in the year-ago quarter.
Education Technology Services: This segment includes Employer Solutions, Workforce Edge and Sophia Learning. The segment’s quarterly revenues were $24.5 million, up 25.6% year over year, backed by solid growth in Sophia Learning subscriptions and employer-affiliated enrollment.
Sophia Learning’s average total subscribers increased 37% from the year-ago period’s levels. Employer-affiliated enrollment was 29.3% of USHE enrollment compared with 27.1% in the year-ago period.
Its operating margin was 40.9% in the reported quarter, up by a whopping 930 basis points (bps) from a year ago.
ANZ: This segment includes Torrens University, Think Education and Media Design School. The segment's revenues were $71.1 million, up 8.6% year over year, driven by higher enrollment and revenue-per-student. On a constant-currency basis, revenues rose 10.3% to $72.2 million year over year.
Student enrollment within ANZ rose 6.4% to 19,113 students during the reported quarter compared with the year-ago quarter.
The operating margin was 19.8%, down from 21.8% in the same period of 2023. On a constant-currency basis, the operating income margin was 19.9%, down from 21.8% in the year-ago period.
Operating Highlights
Adjusted operating income was up 61.4% to $43.9 million from $27.2 million in the year-ago quarter. The adjusted operating margin of 14.1% expanded a whopping 460 bps from the year-ago quarter.
Adjusted EBITDA in the reported quarter was $63.3 million, up from $45.4 million in the year-ago quarter.
Financial Details
As of Jun 30, 2024, SEI had cash and cash equivalents of $230.1 million, up from $168.5 million in 2023-end. Long-term debt at the second quarter of 2024-end was $61.3 million, slightly down from $61.4 million in 2023-end.
Cash provided by operating activities was $101.9 million in the first six months of 2024, up from $40.7 million in the comparable year-ago period. In the first half of 2024, capital expenditures were $19.9 million compared with $17.8 million a year ago.
In the second quarter of 2024, consolidated bad debt expense was 4.3% of revenue, slightly down from 4.4% for the same period in 2023.
Zacks Rank & Recent Consumer Discretionary Releases
Strategic Education currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boyd Gaming Corporation (BYD - Free Report) reported second-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The company’s top line increased year over year.
Segment-wise, Boyd Gaming’s Las Vegas Locals market showed improvement from the first quarter. Its business in this segment achieved market share growth. Additionally, the company experienced strong growth in its Downtown Las Vegas operations and maintained stable performance in Midwest and South operations.
Hasbro, Inc. (HAS - Free Report) reported second-quarter fiscal 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Despite a year-over-year revenue decline, earnings increased on the back of a favorable business mix and improved operations.
For the full year, HAS expects total adjusted EBITDA between $975 million and $1.025 billion compared with the prior prediction of $925 million and $1 billion.
Mattel, Inc. (MAT - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top line missed the consensus estimate for the third straight quarter.
Mattel anticipates 2024 adjusted EPS between $1.35 and $1.45, compared with $1.23 in 2023. The Zacks Consensus Estimate for 2024 EPS is pegged at $1.40.