Q2 Revenue Beats on 15% Ed-Tech Surge, But EPS Misses
STRA sits 17% above its 52-week low of $69.7.
Summary
Strategic Education posted Q2 revenue of $337.3M, beating the $327.67M consensus, driven by a 15%+ surge in its Education Technology Services segment. Adjusted EPS of $1.76 missed the $1.80 estimate, and the company recorded a $13.9M reserve for an Australian regulatory matter. The company repurchased $32.8M in shares during the quarter, continuing its capital return program. The top-line beat and strong ed-tech growth are the key positives, but the EPS miss and regulatory overhang temper the report. No guidance was provided.
Updates
· SEC 10-Q — The 10-Q shows Q2 net income of $37.2M, diluted EPS of $1.71, and a $13.9M ANZ back-pay reserve included in accrued compensation.
At the time of this announcement, STRA was trading at $81.39 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $1.8B. The 52-week trading range was $69.70 to $87.38. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.