Higher education company Grand Canyon Education (NASDAQ: LOPE) will be reporting results tomorrow after market hours. Here’s what to expect.
Grand Canyon Education beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $292.6 million, up 5.1% year on year. It was a mixed quarter for the company, with EPS guidance for next quarter beating analysts’ expectations but full-year EPS guidance missing analysts’ expectations. It reported 127,155 students, up 4.9% year on year.
Is Grand Canyon Education a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Grand Canyon Education’s revenue to grow 4.5% year on year to $287.1 million, slowing from the 9.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.51 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Grand Canyon Education has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Grand Canyon Education’s peers in the education services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Strategic Education delivered year-on-year revenue growth of 4.6%, beating analysts’ expectations by 1%, and Laureate Education reported a revenue decline of 14.2%, topping estimates by 4.9%. Strategic Education’s stock price was unchanged after the resultswhile Laureate Education was up 11.2%.
Read our full analysis of Strategic Education’s results here and Laureate Education’s results here.
There has been positive sentiment among investors in the education services segment, with share prices up 8.8% on average over the last month. Grand Canyon Education is up 11.6% during the same time and is heading into earnings with an average analyst price target of $199.33 (compared to the current share price of $186.25).
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