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Sep 30, 2024
Perdoceo Q3 2024 Earnings Report
Perdoceo Education Corporation reported a decrease in revenue but an increase in operating income for the third quarter of 2024, driven by strong student retention and engagement.
Key Takeaways
Perdoceo Education Corporation reported a 5.6% decrease in revenue for the third quarter of 2024, amounting to $169.8 million. However, operating income increased by 4.0% to $44.8 million. Total student enrollments increased by 11.0%, with CTU increasing by 13.6% and AIUS by 4.0%.
Total student enrollments increased by 11.0% due to gains at CTU and AIUS.
Operating income increased 4.0% to $44.8 million.
Revenue decreased by 5.6% to $169.8 million due to changes at AIUS and CTU.
Earnings per diluted share were $0.57, while adjusted earnings per diluted share were $0.59.
Perdoceo
Perdoceo
Perdoceo Revenue by Segment
Revenue by Segment
CTU Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.com Forward Guidance
The Company is increasing its full year outlook while also providing the following fourth quarter outlook, subject to the key assumptions identified below.
Positive Outlook
- Operating Income $33.0M - $36.0M
- Depreciation and amortization $5.5M
- Legal fee expense related to certain matters $0.5M
- Adjusted Operating Income $39.0M - $42.0M
- Earnings Per Diluted Share $0.43 - $0.46
Challenges Ahead
- prospective student interest in the Company’s programs and trends in student retention and engagement remain consistent with management’s estimates
- no significant additional impact of new or proposed regulations, including recent Department negotiated rulemaking initiatives, or other adverse changes in the legal or regulatory environment, which may require further operational changes in the way the Company’s academic institutions enroll, support and educate current and prospective students, among other impacts
- 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 impact from student loan initiatives implemented by the current administration remains consistent with management's estimates
- earnings per diluted share outlook assumes an effective income tax rate of approximately 26% for the fourth quarter and approximately 26.5% for the full year
Revenue & Expenses
Visualization of income flow from segment revenue to net income