Earnings update for Q2 and H1 2015 - Report on Strayer Education

Aug 06, 2015, 09:35 ET from www.aciassociation.com

NEW YORK, August 6, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on Strayer Education Inc. (NASDAQ: STRA). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=STRA  

Highlights from our STRA Report include:

  • Lower enrollments impacted the top-line growth - On July 29, 2015, Strayer Education Inc. announced consolidated results for the second quarter and half year ended June 30, 2015. Revenue for Q1 2015 stood at $109.8 million in Q2 2015, reflecting a decrease of 3%, due to lower enrollments, which resulted in lower revenue per student. Citing same reasons for a drop in revenue in H1 2015, Strayer Education informed that revenue declined by 3% YoY to $221.6 million. The Company added that the total enrollments for the summer term 2015 grew by 2% to 37,221 students compared to 36,403 students for the summer term 2014. The education services holding company saw a 4% increase in enrollments by new students, while recording a 2% increase in enrollments by continuing students.
  • A quick look at Income from operations - In Q2 2015, Strayer Education's income from operations plummeted 13% to $20.9 million as against $24.0 million recorded in Q2 2014. As per the release, excluding non-cash adjustments to the Company's liability for losses on facilities no longer in use, income from operations declined 7% to $21.0 million in Q2 2015 from $22.6 million in Q2 2014. The operating margin contracted by 220 basis points to 19.1% in Q2 2015 from 21.3% in Q2 2014, while declining only by 90 basis points when excluding the non-cash adjustments. For H1 2015, income from operations stood at $40.8 million compared to $49.9 million in H1 2014, down 18%.
  • Bottom-line performance review - Net income tumbled 13% to $11.9 million in Q2 2015 from $13.7 million in Q2 2014. Excluding non-cash adjustments, net income came in at $11.9 million for the quarter, compared to $12.9 million for Q2 2014. For H1 2015, Strayer Education registered an 18% decrease to $23.3 million compared to $28.5 million for the same period in 2014. Excluding non-cash adjustments, net income was $23.2 million for the first six months, compared to $27.1 million in the year-ago period.
  • Update on Earnings per share - Strayer Education reported that diluted earnings per share (EPS) declined 14% to $1.11 in Q2 2015 from $1.29 for the same period in 2014. Meanwhile, the same reduced to $1.11 in the quarter from $1.21 on excluding the non-cash adjustments. For H1 2015, diluted EPS stood at $2.17 compared to $2.68 in H1 2014, reflecting a downfall by 19% YoY. Excluding non-cash adjustments, the EPS stood at $2.17 compared to $2.55 in H1 2014.

To find out how this influences our rating on Strayer Education Inc., read the full report in its entirety here: http://www.aciassociation.com/?c=STRA

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