Let’s dig into the relative performance of Strategic Education (NASDAQ:STRA) and its peers as we unravel the now-completed Q1 education services earnings season.
A whole industry has emerged to address the problem of rising education costs, offering consumers alternatives to traditional education paths such as four-year colleges. These alternative paths, which may include online courses or flexible schedules, make education more accessible to those with work or child-rearing obligations. However, some have run into issues around the value of the degrees and certifications they provide and whether customers are getting a good deal. Those who don’t prove their value could struggle to retain students, or even worse, invite the heavy hand of regulation.
The 8 education services stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 7.6% on average since the latest earnings results.
Best Q1: Strategic Education (NASDAQ:STRA)
Formed through the merger of Strayer Education and Capella Education in 2018, Strategic Education (NASDAQ:STRA) is a career-focused higher education provider.
Strategic Education reported revenues of $303.6 million, up 4.6% year on year. This print exceeded analysts’ expectations by 1%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
“We are pleased with our first quarter results driven by continued strength across the Education Technology Services segment and ongoing focus on growth through employer partnerships,” said Karl McDonnell, Chief Executive Officer of Strategic Education.
Interestingly, the stock is up 4.3% since reporting and currently trades at $83.72.
Is now the time to buy Strategic Education? Access our full analysis of the earnings results here, it’s free.
Lincoln Educational (NASDAQ:LINC)
Established in 1946, Lincoln Educational (NASDAQ:LINC) is a provider of specialized technical training in the United States, offering career-oriented programs to provide practical skills required in the workforce.
Lincoln Educational reported revenues of $117.5 million, up 13.7% year on year, outperforming analysts’ expectations by 2%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 5.9% since reporting. It currently trades at $22.15.
Is now the time to buy Lincoln Educational? Access our full analysis of the earnings results here, it’s free.
Grand Canyon Education (NASDAQ:LOPE)
Founded in 1949, Grand Canyon Education (NASDAQ:LOPE) is an educational services provider known for its operation at Grand Canyon University.
Grand Canyon Education reported revenues of $289.3 million, up 5.3% year on year, exceeding analysts’ expectations by 0.8%. It was a satisfactory quarter as it also posted EPS guidance for next quarter exceeding analysts’ expectations but a miss of analysts’ students estimates.
As expected, the stock is down 1.2% since the results and currently trades at $183.15.
Read our full analysis of Grand Canyon Education’s results here.
Adtalem (NYSE:ATGE)
Formerly known as DeVry Education Group, Adtalem Global Education (NYSE:ATGE) is a global provider of workforce solutions and educational services.
Adtalem reported revenues of $466.1 million, up 12.9% year on year. This number surpassed analysts’ expectations by 4.4%. Overall, it was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates.
The stock is up 5.2% since reporting and currently trades at $122.11.
Read our full, actionable report on Adtalem here, it’s free.
Laureate Education (NASDAQ:LAUR)
Founded in 1998 by Douglas L. Becker and based in Miami, Laureate Education (NASDAQ:LAUR) is a global network of higher education institutions.
Laureate Education reported revenues of $236.2 million, down 14.2% year on year. This result beat analysts’ expectations by 4.9%. It was a very strong quarter as it also recorded a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Laureate Education delivered the biggest analyst estimates beat but had the slowest revenue growth and slowest revenue growth among its peers. The stock is up 12.1% since reporting and currently trades at $22.45.
Read our full, actionable report on Laureate Education here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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