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Strayer Education (STRA) Up 15.9% Since Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Strayer Education, Inc. (STRA - Free Report) . Shares have added about 15.9% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is STRA due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Fourth Quarter 2017 Results
Strayer Education reported fourth-quarter 2017 adjusted earnings of $1.09 per share, missing the Zacks Consensus Estimate of $1.29 by 15.5%. However, earnings improved 15% year over year.
Revenues declined 0.5% to $118.7 million from $119.3 million in the same quarter last year, owing to lower revenue per student due to higher scholarships during the fall term.
Enrollment Details
Total enrollment at Strayer University increased 6% to 48,144 students from 45,509 in the prior-year quarter. New student enrollments rose 4% and continuing student enrollments increased 6%.
Financial Details
Strayer Education ended the year with cash and cash equivalents of $155.9 million, compared with $129.2 million at 2016-end.
The company generated $56.2 million in cash from operating activities in 2017, compared with $44.5 million in the year-ago period. Capital expenditures totaled $18.1 million compared with $13.2 million at the end of 2016.
The company had $70 million worth of share repurchase authorization as of Dec 31, 2017. Notably, no shares were repurchased in the fourth quarter of 2017.
Q1 Guidance
Total enrollments at Strayer University are expected to grow 6% to approximately 46,100 students from the prior-year quarter.
New student enrollments are anticipated to increase approximately 6%. Continuing student enrollments are likely to increase approximately 6%.
Revenue per student in the quarter is likely to decline 5%.
Tax rate for the quarter is expected in the range of 21-22%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter. In the past month, the consensus estimate has shifted by 5.9% due to these changes.
At this time, STRA has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for growth and momentum investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of this revision indicates a downward shift. Notably, STRA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Strayer Education (STRA) Up 15.9% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Strayer Education, Inc. (STRA - Free Report) . Shares have added about 15.9% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is STRA due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Fourth Quarter 2017 Results
Strayer Education reported fourth-quarter 2017 adjusted earnings of $1.09 per share, missing the Zacks Consensus Estimate of $1.29 by 15.5%. However, earnings improved 15% year over year.
Revenues declined 0.5% to $118.7 million from $119.3 million in the same quarter last year, owing to lower revenue per student due to higher scholarships during the fall term.
Enrollment Details
Total enrollment at Strayer University increased 6% to 48,144 students from 45,509 in the prior-year quarter. New student enrollments rose 4% and continuing student enrollments increased 6%.
Financial Details
Strayer Education ended the year with cash and cash equivalents of $155.9 million, compared with $129.2 million at 2016-end.
The company generated $56.2 million in cash from operating activities in 2017, compared with $44.5 million in the year-ago period. Capital expenditures totaled $18.1 million compared with $13.2 million at the end of 2016.
The company had $70 million worth of share repurchase authorization as of Dec 31, 2017. Notably, no shares were repurchased in the fourth quarter of 2017.
Q1 Guidance
Total enrollments at Strayer University are expected to grow 6% to approximately 46,100 students from the prior-year quarter.
New student enrollments are anticipated to increase approximately 6%. Continuing student enrollments are likely to increase approximately 6%.
Revenue per student in the quarter is likely to decline 5%.
Tax rate for the quarter is expected in the range of 21-22%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter. In the past month, the consensus estimate has shifted by 5.9% due to these changes.
Strayer Education, Inc. Price and Consensus
Strayer Education, Inc. Price and Consensus | Strayer Education, Inc. Quote
VGM Scores
At this time, STRA has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for growth and momentum investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of this revision indicates a downward shift. Notably, STRA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.