Strategic Education Q3 revenue rises 1.6%, slightly misses estimates
STRA•Strategic Education’s third-quarter revenue rose 1.6% year over year to $325.1 million, slightly below the $326.68 million estimate. Adjusted EPS of $1.69 missed the $1.95 estimate, and the company recorded a $134.1 million non-cash impairment charge in its Australia/New Zealand segment.
1. Revenue and earnings
Third-quarter revenue increased 1.6% year over year to $325.1 million, slightly below the $326.68 million analyst estimate. Adjusted EPS was $1.69, missing the $1.95 estimate. The company reported a net loss of $98.3 million, or $4.68 per share, and adjusted net income of $36.4 million.
2. Segment results
Education Technology Services revenue rose 12% year over year, while operating income increased 14%, driven by growth in Sophia Learning subscriptions and higher employer-affiliated enrollment. Enrollment in the US Higher Education healthcare portfolio increased 9% and represented 54% of total US Higher Education enrollment. In Australia/New Zealand, enrollment fell 9.1% year over year as lower international enrollment followed regulatory changes; the segment recorded a $134.1 million non-cash impairment charge.
3. No specific guidance
The company did not provide specific financial guidance for current or future periods in its press release.
