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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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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