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Sep 30, 2022
Grand Canyon Education Q3 2022 Earnings Report
Third quarter results were reported.
Key Takeaways
Grand Canyon Education reported a slight increase in service revenue, driven by growth in traditional campus enrollments, but experienced a decrease in net income due to lower interest income and a higher operating margin.
Service revenue increased by 0.9% to $208.7 million compared to Q3 2021.
Partner enrollments totaled 116,202 at September 30, 2022, compared to 118,832 at September 30, 2021.
Operating income decreased to $35.5 million, with an operating margin of 17.0%.
Net income decreased by 37.0% to $30.0 million.
Grand Canyon Education
Grand Canyon Education
Grand Canyon Education Revenue by Segment
Revenue by Segment
Service Revenue
CapyFin.com Forward Guidance
Grand Canyon Education provided an outlook for Q4 2022 and the full year 2022.
Positive Outlook
- Service revenue of between $255.5 million and $256.5 million for Q4 2022.
- Operating margin of between 34.0% and 34.1% for Q4 2022.
- Effective tax rate of 23.0% for Q4 2022.
- Diluted EPS of between $2.18 and $2.19 for Q4 2022.
- Service revenue of between $908.1 million and $909.1 million for full year 2022.
Challenges Ahead
- Operating margin of between 25.7% and 25.8% for full year 2022.
- Effective tax rate of 23.2% for full year 2022.
- Diluted EPS between $5.61 and $5.62 for full year 2022.
- The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $1.6 million for Q4 2022.
- The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $6.5 million and losses on fixed asset disposals net of taxes of $0.9 million for full year 2022.