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Dec 31, 2024
Grand Canyon Education Q4 2024 Earnings Report
Grand Canyon Education reported an increase in revenue and earnings for Q4 2024, driven by higher enrollments and improved revenue per student.
Key Takeaways
Grand Canyon Education, Inc. (GCE) reported strong financial performance for Q4 2024, with service revenue increasing by 5.1% year-over-year to $292.6 million. Net income rose by 1.4% to $81.9 million, while diluted EPS improved to $2.84. Operating income grew to $100.0 million, although the operating margin slightly declined. Adjusted EPS stood at $2.95, reflecting continued enrollment growth and expansion of off-campus sites.
Service revenue increased by 5.1% year-over-year to $292.6 million.
Net income rose by 1.4% to $81.9 million, with diluted EPS at $2.84.
Operating income increased to $100.0 million, but operating margin declined to 34.2%.
Adjusted EPS reached $2.95, driven by enrollment growth and expansion of off-campus sites.
Grand Canyon Education
Grand Canyon Education
Grand Canyon Education Revenue by Segment
Revenue by Segment
Service Revenue
CapyFin.com Forward Guidance
GCE expects continued revenue growth driven by increasing enrollments and higher revenue per student, while maintaining a strong operating margin.
Positive Outlook
- Q1 2025 revenue projected between $286.5M and $287.5M.
- Q1 2025 operating margin expected between 30.0% and 30.2%.
- Q1 2025 adjusted EPS guidance between $2.50 and $2.52.
- Expansion of off-campus sites continues to drive growth.
- Strong liquidity position with increased cash reserves.
Challenges Ahead
- Operating margin slightly lower compared to prior periods.
- Effective tax rate expected to rise to 22.2% in Q1 2025.
- Revenue per student may be affected by contract modifications.
- Potential impact from regulatory and legal challenges.
- Market competition remains a key risk factor.