Core Viewpoint - Perdoceo Education (PRDO) has experienced significant selling pressure, resulting in a 21.9% decline in stock price over the past four weeks, but analysts anticipate improved earnings in the near future [1] Technical Analysis - The Relative Strength Index (RSI) for PRDO is currently at 26.89, indicating that the stock may be oversold and could be poised for a rebound as selling pressure exhausts [5] - RSI is a momentum oscillator that helps identify whether a stock is overbought or oversold, with readings below 30 typically indicating an oversold condition [2][3] Fundamental Indicators - Analysts have raised earnings estimates for PRDO by 1.2% over the last 30 days, suggesting a positive trend that often correlates with price appreciation [7] - PRDO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, indicating strong potential for a turnaround [8]

Core Viewpoint - Perdoceo Education Corporation (NASDAQ:PRDO) is highlighted as a strong investment opportunity in the EdTech sector, with Barrington Research maintaining an Outperform rating and a price target of $42 following the release of Q3 results [1][3]. Financial Performance - Revenue increased by 24.8% to $211.9 million, with earnings per share (EPS) reported at $0.60 GAAP and $0.65 adjusted, alongside an operating income of $51.0 million [2]. - The strong results were attributed to high prospective student interest, retention, and engagement, bolstered by investments in academics, technology, and support processes [2]. Enrollment and Acquisition Impact - The acquisition of the University of St. Augustine for Health Sciences (USAHS) contributed $38.0 million to Q3 revenue and added 4,420 enrollments, which were not present in the previous year [3]. - Total enrollments reached 46,520, reflecting a 15.1% increase, while the company ended the quarter with $668.6 million in cash and investments after returning $30.3 million through buybacks and dividends [3]. Company Overview - Perdoceo Education Corporation offers postsecondary programs through its institutions, including Colorado Technical University, American InterContinental University System, and USAHS, catering to career-focused learners in online and hybrid formats [4].

Core Insights - The comparison between Perdoceo Education (PRDO) and New Oriental Education (EDU) indicates that PRDO may offer better value for investors currently [1][3] Valuation Metrics - PRDO has a forward P/E ratio of 11.92, while EDU's forward P/E is 15.70 [5] - PRDO's PEG ratio stands at 0.79, compared to EDU's PEG ratio of 1.10 [5] - PRDO's P/B ratio is 1.96, whereas EDU has a P/B ratio of 2.25 [6] Earnings Outlook - PRDO is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]

Core Viewpoint - Perdoceo Education (PRDO) has faced significant selling pressure, resulting in a 13.4% decline in stock price over the past four weeks, but analysts anticipate improved earnings in the near future [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) indicates that PRDO is currently in oversold territory with a reading of 26.75, suggesting a potential reversal in stock price [5] - RSI is a momentum oscillator that helps identify overbought or oversold conditions, typically indicating oversold status when below 30 [2][3] Group 2: Fundamental Analysis - Analysts have raised earnings estimates for PRDO by 1.2% over the last 30 days, which often correlates with price appreciation [7] - PRDO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, indicating strong potential for a turnaround [8]

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Core Viewpoint - Perdoceo Education Corporation held its Third Quarter 2025 Earnings Conference Call, indicating ongoing communication with investors and stakeholders regarding financial performance and future outlook [2][3]. Group 1: Earnings Call Details - The conference call was led by Todd Nelson, President and CEO, and Ashish Ghia, CFO, highlighting the leadership's involvement in discussing the company's financial results [2]. - The call was made accessible via a live webcast on the company's Investor Relations website, with a replay available for 90 days, demonstrating the company's commitment to transparency [3]. Group 2: Forward-Looking Statements - The earnings release included forward-looking statements as defined by the Securities Exchange Act, indicating that the company is providing projections based on current assumptions and available information [4]. - The company acknowledged that these forward-looking statements involve risks and uncertainties that could lead to actual results differing from those projected, emphasizing the importance of understanding potential variability in performance [5].

Financial Data and Key Metrics Changes - The company reported net income of $39.9 million, or $0.60 per diluted share, with adjusted earnings per diluted share at $0.65 compared to $0.59 in the prior year [6][12] - Revenue for the third quarter was $211.9 million, representing a 24.8% increase from $169.8 million in the prior year [12] - Adjusted operating income grew by 27.4% to $61 million compared to $47.8 million during the prior year [12] Business Line Data and Key Metrics Changes - Total student enrollments grew 15.1% year-over-year, driven by a 6.7% increase at CTU and the acquisition of St. Augustine [7][12] - CTU's revenue was $117.1 million, a 4.3% increase from the prior year, while operating income increased 6.7% to $47.8 million [15] - AIU system's revenue remained flat at $56.7 million, but operating income increased due to lower operating expenses [15][16] - St. Augustine recorded third quarter revenue of $38 million, with adjusted operating income expected to grow in 2026 [16] Market Data and Key Metrics Changes - The corporate student programs at CTU and AIU continue to see increasing enrollments, which remain a priority for the company [9] - New student enrollments at St. Augustine increased, particularly in nursing and speech-language pathology programs [14] Company Strategy and Development Direction - The company is focused on enhancing academic outcomes and student experiences through investments in technology and support processes [10][24] - There is a commitment to returning capital to shareholders, with $94.1 million returned through share repurchases and dividends in the first three quarters of 2025 [10][21] - The company plans to continue expanding corporate student program teams to support further growth and engagement [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting continued growth in student retention and engagement [11][22] - The company anticipates revenue and total student enrollments to increase in the fourth quarter and for the full year 2025 [15][23] - Adjusted operating income outlook for the full year 2025 is updated to a range between $234 million and $236 million [21][22] Other Important Information - The effective tax rate for the year-to-date period was 26.2%, with expectations for the full year to be between 26% and 26.5% [17] - The company ended the third quarter with $668.6 million in cash and equivalents, an increase of approximately $77.1 million from the year-end position [18] Q&A Session Summary - No specific questions or answers were documented in the provided content, thus this section is not applicable.

Financial Data and Key Metrics Changes - The company reported net income of $39.9 million, or $0.60 per diluted share, with adjusted earnings per diluted share at $0.65 compared to $0.59 in the prior year [6][12] - Revenue for the third quarter was $211.9 million, representing a 24.8% increase from $169.8 million in the prior year [12] - Adjusted operating income grew by 27.4% to $61 million compared to $47.8 million during the prior year [12] Business Line Data and Key Metrics Changes - Total student enrollments grew 15.1% year-over-year, driven by a 6.7% increase at CTU and the acquisition of St. Augustine [7][12] - CTU's revenue was $117.1 million, a 4.3% increase from the prior year, while operating income increased 6.7% to $47.8 million [15] - AIU system's revenue remained flat at $56.7 million, but operating income increased due to lower operating expenses [15][16] - St. Augustine recorded third quarter revenue of $38 million, with adjusted operating income expected to grow in 2026 [16] Market Data and Key Metrics Changes - The corporate student programs at CTU and AIU continue to see increasing enrollments, which are a priority for the company [9] - New student enrollments at St. Augustine for the fall term were higher compared to the prior year, particularly in nursing and speech-language pathology programs [14] Company Strategy and Development Direction - The company is focused on enhancing academic outcomes and student experiences through investments in technology and support processes [10][24] - There is a commitment to returning capital to shareholders, with $94.1 million returned through share repurchases and dividends in the first three quarters of 2025 [10][21] - The company plans to continue expanding corporate student program teams to support further growth and engagement [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting continued growth in student retention and engagement [11][22] - The company updated its full-year adjusted operating income outlook to a range between $234 million and $236 million, driven by the St. Augustine acquisition and positive trends at CTU and AIU [22][23] - The effective tax rate for the full year 2025 is expected to be between 26% and 26.5%, benefiting from tax provisions related to the St. Augustine acquisition [17] Other Important Information - The company repurchased 660,000 shares for $20.6 million during the quarter, with a total of 2.3 million shares repurchased year-to-date [21] - A quarterly dividend payment of $0.15 per share was declared, payable on December 12, 2025 [19][20] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the call may have concluded without a Q&A segment [27]

Financial Data and Key Metrics Changes - The company reported net income of $39.9 million, or $0.60 per diluted share, with adjusted earnings per diluted share at $0.65 compared to $0.59 in the prior year [6][12] - Revenue for the third quarter was $211.9 million, representing a 24.8% increase from $169.8 million in the prior year [12] - Operating income grew by 13.8% to $51 million, while adjusted operating income increased 27.4% to $61 million compared to $47.8 million during the prior year [12][16] Business Line Data and Key Metrics Changes - Total student enrollments grew 15.1% year-over-year, driven by a 6.7% growth at CTU and the acquisition of St. Augustine [6][12] - CTU's total enrollments increased by 6.7%, marking eight consecutive quarters of growth [7][13] - AIU reported a decline in total student enrollments of 2.9%, but is expected to end the year with double-digit growth [7][13] Market Data and Key Metrics Changes - At St. Augustine, new student enrollments increased compared to the prior year, with approximately 4,400 total students enrolled for the fall term [8][15] - The corporate student programs at CTU and AIU continue to see increasing enrollments, which remain a priority for the company [9][12] Company Strategy and Development Direction - The company is focused on enhancing academic outcomes and student experiences through investments in technology and support processes [10][24] - There is a commitment to returning capital to shareholders, with $94.1 million returned through share repurchases and dividends in the first three quarters of 2025 [10][21] - The company plans to continue expanding corporate student program teams to support further growth and engagement [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting continued growth in student retention and engagement [11][22] - The company updated its full-year adjusted operating income outlook to a range between $234 million and $236 million, driven by the St. Augustine acquisition and positive trends at CTU and AIU [22][23] - The effective tax rate for the full year 2025 is expected to be between 26% and 26.5%, benefiting from various tax provisions [18][19] Other Important Information - The company repurchased 660,000 shares for $20.6 million during the quarter, with a total of 2.3 million shares repurchased year-to-date [21] - The Board of Directors declared a quarterly dividend payment of $0.15 per share, reflecting confidence in the long-term outlook [20] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.

Enrollment Growth - Total student enrollments increased by 15.1% as of September 30, 2025, compared to the same date in 2024, primarily driven by the USAHS acquisition and enrollment growth at CTU [120] - CTU's total student enrollments increased by 6.7% compared to the prior year quarter, supported by high levels of student retention and engagement [120] - AIUS experienced a decrease in total student enrollments by 2.9% compared to the prior year quarter, attributed to a lower number of enrollment days [120] - Total student enrollments increased by 15.1% to 46,520 as of September 30, 2025, with CTU enrollment growing by 6.7% [155] Revenue and Income - Revenue for the current quarter increased by 24.8% or $42.0 million compared to the prior year quarter, mainly due to $38.0 million of revenue from the USAHS acquisition [123] - Total revenue for the quarter ended September 30, 2025, increased by 24.8% or $42.0 million compared to the prior year, driven primarily by the acquisition of USAHS [139] - Operating income for the current quarter rose to $51.0 million, up from $44.8 million in the prior year quarter, driven by increased operating income within CTU and AIUS [124] - Operating income for the quarter was $50.96 million, a 13.8% increase from the previous year [137] - Adjusted operating income for the current quarter was $61.0 million, compared to $47.8 million for the prior year quarter [125] - Adjusted earnings per diluted share for the current quarter was $0.65, up from $0.59 in the prior year quarter [127] Expenses - Educational services and facilities expense for the current quarter increased by 73.7% or $20.9 million, attributed to a full quarter of expenses related to the USAHS acquisition [140] - General and administrative expense for the current quarter rose by 8.6% or $8.1 million, largely due to expenses related to the USAHS acquisition [141] - Advertising and marketing expenses increased by 10.4% or $2.8 million for the current quarter, primarily due to the USAHS acquisition [142] - Admissions expenses rose by 8.8% or $1.8 million for the current quarter, also influenced by the USAHS acquisition [143] - Administrative expenses increased by 11.4% or $4.3 million for the current quarter and 12.5% or $14.3 million year to date, primarily due to expenses related to the USAHS acquisition [144] - Depreciation and amortization expenses increased by $7.0 million for the current quarter and $22.8 million year to date, driven by the USAHS acquisition [148] Cash Flow and Financing - Net cash flows from operating activities increased to $185.1 million for the year to date ended September 30, 2025, compared to $144.0 million for the same period in 2024, driven by increased operating income [172] - Net cash flows used in investing activities totaled $29.8 million for the year to date ended September 30, 2025, a significant change from a net cash inflow of $7.3 million in the prior year [176] - Net cash flows used in financing activities totaled $106.3 million for the year to date ended September 30, 2025, up from $31.5 million in the prior year, with share repurchases accounting for $66.7 million [179] - Cash balances totaled $668.6 million as of September 30, 2025, with restricted cash of $21.3 million related to a letter of credit for USAHS [164] Tax and Regulatory Environment - The effective tax rate for the quarter was 28.9%, compared to 26.9% in the prior year [137] - The effective tax rate for the current quarter was 28.9%, with an expected full-year rate between 26.0% and 26.5% [150] - The company is actively engaging with private lending institutions to assess the impact of new federal loan limits on funding availability for students [130] - Uncertainty remains regarding which programs will qualify for higher federal loan funding under the new regulations, potentially affecting student enrollments and profitability [135] - The company is highly dependent on Title IV Program funds for operations, with potential impacts on financial performance due to changes in student enrollment and funding eligibility [171] Stock and Dividends - The company approved a new stock repurchase program for up to $75.0 million, effective from July 31, 2025, to January 31, 2027 [168] - As of September 30, 2025, the company repurchased 2.3 million shares for $66.7 million at an average price of $29.07 per share, with approximately $54.3 million remaining under the current stock repurchase program [169] - The Board of Directors declared a quarterly dividend of $0.15 per share, to be paid on December 12, 2025, indicating a commitment to a balanced capital allocation strategy [170] Other Financial Metrics - Net income for the quarter ended September 30, 2025, was $39.85 million, representing an increase of 4.2% compared to the prior year [137] - Total bad debt expense decreased by 9.4% or $0.8 million for the current quarter and 2.0% or $0.4 million year to date, driven by decreases at AIUS [146] - Corporate and Other operating loss improved by 27.7% or $2.3 million for the current quarter and 26.2% or $6.1 million year to date, due to lower acquisition-related expenses [162] - Student receivables increased by 81% to $41.3 million as of September 30, 2025, driven by the timing of student billings [182] - Accrued expenses for income taxes rose by 117% to $10.7 million, primarily related to estimated payments for 2025 [183] - Interest rate exposure is managed with no derivative financial instruments, and a 100 basis point change in interest rates would not materially impact future earnings or cash flows [186]