Perdoceo Education's Q3 revenue rises 24.8%, beats estimates

Perdoceo Education reported a 24.8% year-over-year increase in Q3 revenue, surpassing analyst expectations. The adjusted EPS also exceeded consensus, reflecting strong operational performance. The company repurchased shares and paid $30.3 million in dividends. For Q4, Perdoceo anticipates operating income between $38.1 million and $40.1 million, with a full-year forecast of $192.2 million to $194.2 million. A 15.1% rise in student enrollments contributed to revenue growth. The stock is rated as a "strong buy" with a 12-month price target of $42.00, indicating a potential upside from its current price of $30.89.

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Overview

Perdoceo Q3 revenue grows 24.8% yr/yr, beating analysts’ expectations
Adjusted EPS for Q3 beats consensus, reflecting positive operational performance
Company repurchased shares and paid dividends worth $30.3 mln

Outlook

Perdoceo expects Q4 operating income between $38.1 mln and $40.1 mln
Company forecasts full-year operating income of $192.2 mln to $194.2 mln
Perdoceo sees Q4 EPS between $0.48 and $0.50

Result Drivers

STUDENT ENROLLMENT - Co reports 15.1% increase in total student enrollments, boosting revenue
INVESTMENTS IN ACADEMICS - Co cites investments in academics and technology as enhancing student outcomes

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $211.90 $207 mln

Revenue mln (1

Analyst)

Q3 Beat $0.65 $0.61 (1

Adjusted Analyst)

EPS

Q3 EPS $0.60

Q3 Net $39.85

Income mln

Q3 Beat $61 mln $57.86

Adjusted mln (1

Operatin Analyst)

g Income

Q3 Capex $1.85

mln

Analyst Coverage

The one available analyst rating on the shares is “strong buy”
The average consensus recommendation for the miscellaneous educational service providers peer group is “buy.”
Wall Street’s median 12-month price target for Perdoceo Education Corp is $42.00, about 26.5% above its November 3 closing price of $30.89
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)