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Jun 30, 2023
Perdoceo Q2 2023 Earnings Report
Reported an increase in revenue and operating income, driven by improvements in student retention and engagement.
Key Takeaways
Perdoceo Education Corporation reported strong second-quarter results with an 11.3% increase in revenue to $186.6 million and a 41.7% increase in operating income to $48.1 million. Earnings per diluted share rose to $0.80, and the company declared an inaugural quarterly dividend of $0.11 per share.
Revenue increased by 11.3% to $186.6 million, primarily driven by an 18.7% increase at CTU.
Operating income increased by 41.7% to $48.1 million.
Earnings per diluted share were $0.80, compared to $0.37 in the prior year quarter.
The company declared an inaugural quarterly dividend of $0.11 per share.
Perdoceo
Perdoceo
Perdoceo Revenue by Segment
Revenue by Segment
CTU Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.com Forward Guidance
The company provided an outlook for the third quarter and full year, based on key assumptions including student interest, regulatory environment, and the impact of student aid initiatives.
Positive Outlook
- Operating income for the quarter ending September 30, 2023, is projected to be between $38.6 million and $40.6 million.
- Adjusted operating income for the quarter ending September 30, 2023, is expected to be between $43.0 million and $45.0 million.
- Earnings per diluted share for the quarter ending September 30, 2023, are projected to be between $0.46 and $0.48.
- Adjusted earnings per diluted share for the quarter ending September 30, 2023, are expected to be between $0.48 and $0.50.
- The company anticipates an effective income tax rate of approximately 28% for the third quarter and 27% for the full year.
Challenges Ahead
- The outlook is subject to prospective student interest in the Company’s programs and trends in student retention and engagement remain consistent with management’s estimates.
- The outlook is subject to no significant impact of new or proposed regulations, including recent Department negotiated rulemaking initiatives, or other adverse changes in the legal or regulatory environment.
- The outlook is subject to no significant operating impacts from the settlements with the U.S. Federal Trade Commission and state attorneys general or other legal or regulatory matters.
- The outlook is subject to the impact from student aid initiatives implemented by the current administration remains consistent with management's estimates.
- The outlook excludes any future impact from the Company’s stock repurchase program.
Revenue & Expenses
Visualization of income flow from segment revenue to net income