Higher education company Strategic Education (NASDAQ: STRA) will be announcing earnings results this Wednesday before market hours. Here’s what to expect.
Strategic Education missed analysts’ revenue expectations last quarter, reporting revenues of $305.9 million, flat year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates. It reported 87,165 domestic students, flat year on year.
Is Strategic Education a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Strategic Education’s revenue to grow 1.9% year on year, slowing from the 2.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Strategic Education has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Strategic Education’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AMC Entertainment delivered year-on-year revenue growth of 14.2%, beating analysts’ expectations by 8.7%, and Delta reported revenues up 18.7%, topping estimates by 3.9%. AMC Entertainment traded up 13.4% following the results while Delta was down 3.2%.
Read our full analysis of AMC Entertainment’s results here and Delta’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the consumer discretionary stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2% on average over the last month. Strategic Education is up 1.9% during the same time and is heading into earnings with an average analyst price target of $88.67 (compared to the current share price of $78.60).
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