Strayer Education Earnings Preview

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Watch Strayer Education's (NAS: STRA) earnings report to see if it can beat analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings on Thursday, February 16. Strayer Education, through its subsidiaries, makes post-secondary education achievable and convenient for working adults in today's economy.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Strayer Education with nine of 13 analysts rating it hold. Analysts don't like Strayer Education as much as competitor Bridgepoint Education overall. Four out of six analysts rate Bridgepoint Education a buy compared to three of 13 for Strayer Education. Analysts haven't adjusted their rating of Strayer Education for the past three months.
  • Revenue Forecasts: On average, analysts predict $154.8 million in revenue this quarter. That would represent a decline of 10% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $2.26 per share. Estimates range from $2.24 to $2.32.

What our community says:
CAPS All-Stars are strongly backing the stock, with 84.6% assigning it an "outperform" rating. Most of the community agrees with the All-Stars, with 81% giving it a rating of "outperform." Fools have embraced Strayer Education and haven't been shy with their opinions lately, logging 156 posts in the past 30 days. Strayer Education's bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
Strayer Education's income has fallen year-over-year by an average of 11.5% over the past five quarters. A year-over-year revenue decrease last quarter snaps a streak of three consecutive quarters of revenue increases. The company's gross margin shrank by 17 percentage points in the last quarter. Revenue fell 7.9% while cost of sales rose 39.1% to $68.2 million from a year earlier.

Now, a look at how efficient management has been at running the business. Traditionally, margins serve as an illustration of how efficiently a company captures portions of sales dollars. Strayer Education's net margins, which reflect what percentage of revenue becomes profit, have been dropping year-over-year for the last four quarters. Here are Strayer Education's reported margins for the last four quarters: 

QuarterQ3Q2Q1Q4
Gross Margin49.8%53.4%56.4%66.8%
Operating Margin18%30.6%34.4%34.3%
Net Margin10.3%18.1%20.8%20.9%

For all our Strayer Education-specific analysis, including earnings and beyond, add Strayer Education to My Watchlist.

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Earnings estimates provided by Zacks.

At the time this article was published

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