Perdoceo Education Earnings: What To Look For From PRDO

Higher education company Perdoceo Education (NASDAQ:PRDO) will be announcing earnings results tomorrow afternoon. Here’s what investors should know.

Perdoceo Education beat analysts’ revenue expectations by 3.2% last quarter, reporting revenues of $169.8 million, down 5.6% year on year. It was a strong quarter for the company, with EPS guidance for next quarter beating analysts’ expectations.

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 grow 8.2% year on year to $160.1 million, a reversal from the 16% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.48 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 4.1% on average.

Looking at Perdoceo Education’s peers in the education services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Adtalem delivered year-on-year revenue growth of 13.9%, beating analysts’ expectations by 4.7%, and Universal Technical Institute reported revenues up 15.3%, topping estimates by 3.9%. Adtalem traded up 4.6% following the results while Universal Technical Institute was also up 3.8%.

Read our full analysis of Adtalem’s results here and Universal Technical Institute’s results here.

Investors in the education services segment have had steady hands going into earnings, with share prices up 1.1% on average over the last month. Perdoceo Education is up 2.1% during the same time and is heading into earnings with an average analyst price target of $32 (compared to the current share price of $28.46).

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