Higher education company Strategic Education (NASDAQ: STRA) will be announcing earnings results this Thursday before market open. Here’s what you need to know.
Strategic Education met analysts’ revenue expectations last quarter, reporting revenues of $323.2 million, up 3.8% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates. It reported 85,306 domestic students, down 4% year on year.
Is Strategic Education a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Strategic Education’s revenue to grow 2% year on year, slowing from the 4.6% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Strategic Education has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Strategic Education’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Monarch delivered year-on-year revenue growth of 8.9%, beating analysts’ expectations by 5.2%, and Levi's reported revenues up 14.1%, topping estimates by 5.6%. Levi's traded up 10.7% following the results.
Read our full analysis of Monarch’s results here and Levi’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 11.3% on average over the last month. Strategic Education’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $95 (compared to the current share price of $83.59).
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