Strategic Education (STRA) Reports Q3: Everything You Need To Know Ahead Of Earnings

Higher education company Strategic Education (NASDAQ:STRA) will be reporting results tomorrow before the bell. Here’s what to expect.

Strategic Education beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $312.3 million, up 8.5% year on year. It was a strong quarter for the company, with a decent beat of analysts’ operating margin and EBITDA estimates.

Is Strategic Education a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Strategic Education’s revenue to grow 5.4% year on year to $301.5 million, slowing from the 8.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.80 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Strategic Education has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Strategic Education’s peers in the education services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Adtalem delivered year-on-year revenue growth of 13.2%, beating analysts’ expectations by 5%, and Laureate Education reported revenues up 2%, topping estimates by 1.9%. Adtalem traded up 9.5% following the results while Laureate Education was also up 8.5%.

Read our full analysis of Adtalem’s results here and Laureate Education’s results here.

There has been positive sentiment among investors in the education services segment, with share prices up 3.3% on average over the last month. Strategic Education’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $121.33 (compared to the current share price of $88.10).

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