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Jun 30, 2020
Grand Canyon Education Q2 2020 Earnings Report
Second quarter results of 2020 were announced.
Key Takeaways
Grand Canyon Education reported a service revenue increase of 6.3% year over year, primarily due to increased enrollments at university partners, but operating income decreased due to reduced ancillary revenues at GCU and fewer revenue-producing days.
Service revenue increased by 6.3% year-over-year to $185.8 million.
End-of-period enrollment in university partner programs increased by 8.2% to 98,326.
Operating income decreased to $48.3 million with an operating margin of 26.0%.
Net income decreased to $47.0 million, with diluted net income per share at $1.00.
Grand Canyon Education
Grand Canyon Education
Grand Canyon Education Revenue by Segment
Revenue by Segment
Service Revenue
CapyFin.com Forward Guidance
The company provided financial outlook for Q3 2020, Q4 2020 and full year 2020
Positive Outlook
- Net revenue of $197.5 million for Q3 2020
- As Adjusted Operating Margin 26.3% for Q3 2020
- As Adjusted Diluted EPS of $1.11 for Q3 2020 using 47.2 million diluted shares
- Net revenue of $237.5 million for Q4 2020
- As Adjusted Operating Margin 40.1% for Q4 2020
Challenges Ahead
- As Adjusted Diluted EPS of $1.80 for Q4 2020 using 47.2 million diluted shares
- Net revenue of $842.4 million for full year 2020
- As Adjusted Operating Margin 33.3% for full year 2020
- As Adjusted Diluted EPS of $5.47 for full year 2020 using 47.3 million diluted shares
- We estimate that the shift in net revenue from the third quarter to the fourth quarter as a result of the shift in the start date of the GCU Fall semester is $9.9 million lower revenue in the third quarter and $9.9 million higher revenue in the fourth quarter.