Bridgepoint Education Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

Bridgepoint Education (NYS: BPI) reported earnings on Mar. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Bridgepoint Education beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped.

Margins shrank across the board.

Revenue details
Bridgepoint Education booked revenue of $221.3 million. The nine analysts polled by S&P Capital IQ wanted to see revenue of $217.1 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $192.4 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.41. The nine earnings estimates compiled by S&P Capital IQ predicted $0.38 per share. GAAP EPS of $0.41 for Q4 were 11% lower than the prior-year quarter's $0.46 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 67.6%, 410 basis points worse than the prior-year quarter. Operating margin was 16.0%, 720 basis points worse than the prior-year quarter. Net margin was 10.3%, 340 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $244.3 million. On the bottom line, the average EPS estimate is $0.87.

Next year's average estimate for revenue is $972.9 million. The average EPS estimate is $2.80.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Bridgepoint Education is outperform, with an average price target of $29.80.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Bridgepoint Education. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy

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