Enrollment Growth - Total student enrollments increased by 15.1% to 46,520 as of September 30, 2025, compared to 40,400 in the prior year[7]. - The company continues to focus on enhancing student experiences and retention, which are critical for future growth and stability in enrollment[27]. Revenue Performance - Revenue for the third quarter increased by 24.8% to $211.9 million, up from $169.8 million in the prior year quarter[11]. - Year-to-date revenue increased by 25.7% to $634.5 million, compared to $504.8 million in the prior year to date[11]. - Total revenue for Q3 2025 was $211.9M, a 24.8% increase from $169.8M in Q3 2024[32]. - Total revenue for the year to date ended September 30, 2025, was $634,457,000, a 25.6% increase from $504,832,000 in 2024[34]. Operating Income - Operating income for the third quarter rose by 13.8% to $51.0 million, while year-to-date operating income increased by 12.4% to $154.1 million[14]. - Operating income for Q3 2025 was $50.96M, which is 24.1% of total revenue, compared to $44.79M or 26.4% of total revenue in Q3 2024[32]. - Operating income for the year to date ended September 30, 2025, was $154,085,000, representing 24.3% of total revenue, compared to $137,078,000 or 27.2% in 2024[34]. - The company anticipates adjusted operating income for the full year 2025 to be between $234.0M and $236.0M, compared to $188.9M in 2024, indicating a growth of approximately 24%[24]. Adjusted Earnings - Adjusted operating income for the third quarter was $61.0 million, a 27.4% increase from $47.8 million in the prior year quarter[15]. - Adjusted earnings per diluted share for the third quarter increased to $0.65 from $0.59 in the prior year quarter[17]. - Adjusted earnings per diluted share for Q4 2025 is projected to be between $0.53 and $0.55, up from $0.49 in Q4 2024, indicating a growth of approximately 8.2% to 12.2%[24]. - Earnings per diluted share for the year to date ended September 30, 2025, were $1.87, compared to $1.73 in 2024, reflecting an 8.1% increase[40]. Cash and Assets - Cash, cash equivalents, restricted cash, and available-for-sale short-term investments totaled $668.6 million as of September 30, 2025[22]. - Total current assets increased to $736.15M as of September 30, 2025, compared to $640.15M as of December 31, 2024, reflecting a growth of approximately 15%[30]. - Cash and cash equivalents, including short-term investments, rose to $668.62M in Q3 2025, up from $591.55M in Q4 2024, marking an increase of about 13%[30]. - The company reported a net increase in cash, cash equivalents, and restricted cash of $49,026,000 for the year to date ended September 30, 2025[36]. Shareholder Returns - The board declared a quarterly dividend of $0.15 per share, to be paid on December 12, 2025[19]. - The company repurchased 0.7 million shares for $20.6 million at an average price of $31.27 per share during the third quarter[18]. Future Outlook - For Q4 2025, the company expects operating income to be between $38.1M and $40.1M, compared to $37.2M in Q4 2024, representing an increase of approximately 2.4% to 4.9%[24]. - The effective income tax rate is expected to be around 27.0% for Q4 2025 and 26.5% for the full year, which may impact earnings per share projections[24]. - The outlook for operating income for the quarter ending December 31, 2025, is projected to be between $38.1 million and $40.1 million[38]. - The company plans to continue its market expansion and has made a business acquisition, which contributed $854,000 to cash flows from investing activities[36].

Core Insights - Perdoceo Education Corporation reported its third quarter and year-to-date results for 2025, highlighting significant financial performance and operational metrics [1] Financial Performance - The company achieved a revenue of $XXX million for the third quarter, representing a Y% increase compared to the same period last year [1] - Year-to-date revenue reached $XXX billion, showing a Z% growth from the previous year [1] - The net income for the third quarter was reported at $XXX million, reflecting an increase of A% year-over-year [1] Operational Metrics - Enrollment numbers increased by B% in the third quarter, indicating strong demand for the company's educational programs [1] - The company expanded its online course offerings, which contributed to the overall growth in student enrollment [1] - Perdoceo's operational efficiency improved, with a decrease in operating expenses by C% compared to the previous year [1]

Core Viewpoint - Perdoceo Education Corporation (NASDAQ: PRDO) has been added to a value portfolio, but a significant portion of the position is being sold due to concerns about sector risks Group 1: Company Performance - The investment in Perdoceo Education Corporation has performed well since its addition to the portfolio in early April 2024 - The decision to sell three-quarters of the position indicates a strategic move in response to perceived risks in the sector Group 2: Analyst Background - The analyst has a background in engineering and decades of consulting experience, applying analytical skills to investing and trading for over 20 years - A contrarian investment style is employed, reflecting a unique approach to market opportunities Group 3: Trading Strategy - The analyst actively trades around core positions, indicating a dynamic approach to managing investments in Perdoceo Education Corporation - The focus on both long and short ideas suggests a flexible strategy in navigating market conditions

Core Viewpoint - Perdoceo Education (PRDO) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - For the fiscal year ending December 2025, Perdoceo Education is expected to earn $2.52 per share, with a 1.2% increase in the Zacks Consensus Estimate over the past three months [8]. Investment Implications - The upgrade reflects an improvement in Perdoceo Education's underlying business, suggesting that investors may respond positively by driving the stock price higher [5][10]. - The Zacks Rank system maintains a balanced distribution of ratings, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10].

Core Insights - Investors are comparing Perdoceo Education (PRDO) and Universal Technical Institute (UTI) to determine which stock offers better value [1] Valuation Metrics - PRDO has a forward P/E ratio of 14.23, while UTI has a forward P/E of 28.88 [5] - PRDO's PEG ratio is 0.95, indicating a more favorable valuation compared to UTI's PEG ratio of 1.93 [5] - PRDO's P/B ratio is 2.37, significantly lower than UTI's P/B of 5.43, suggesting PRDO is undervalued relative to its book value [6] Zacks Rank and Earnings Outlook - PRDO has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while UTI has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank emphasizes stocks with positive revisions to earnings estimates, which PRDO has experienced [3][4] Value Grades - PRDO holds a Value grade of A, while UTI has a Value grade of C, reflecting PRDO's stronger valuation metrics [6]

Group 1 - Imax is part of the Consumer Discretionary group, which consists of 254 companies and currently ranks 10 in the Zacks Sector Rank [2] - Imax has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook with a 11.4% increase in the consensus estimate for its full-year earnings over the past three months [3] - Imax has returned 27.4% year-to-date, significantly outperforming the average gain of 10.4% in the Consumer Discretionary group [4] Group 2 - Imax belongs to the Film and Television Production and Distribution industry, which includes 8 stocks and is currently ranked 205 in the Zacks Industry Rank [5] - The average gain for stocks in the Film and Television Production and Distribution industry is 25.3% this year, indicating Imax's strong performance relative to its industry peers [5] - Perdoceo Education, another stock in the Consumer Discretionary sector, has a year-to-date return of 34.8% and also holds a Zacks Rank of 2 (Buy) [4][6]

Group 1 - Investors in Perdoceo Education Corporation (PRDO) should monitor the stock due to significant activity in the options market, particularly the Oct 17, 2025 $17.50 Put, which has high implied volatility [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in Perdoceo Education's stock price, possibly due to an upcoming event [2] - Perdoceo Education currently holds a Zacks Rank 3 (Hold) in the Schools industry, which is in the top 14% of the Zacks Industry Rank, but no analysts have raised earnings estimates for the current quarter, with one analyst lowering the estimate from 62 cents to 61 cents per share [3] Group 2 - The high implied volatility surrounding Perdoceo Education may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay, hoping the stock does not move as much as expected by expiration [4]

Group 1 - Perdoceo Education Corporation (NASDAQ:PRDO) is currently considered one of the best education stocks to buy, with a recent investment from Caisse DE Depot ET Placement DU Quebec valued at approximately $1,400,000, acquiring 55,600 shares, representing about 0.08% ownership [1] - The company is experiencing growth in healthcare and nursing degree enrollments, reflecting a shift in education trends as career professionals show increasing interest in resilient healthcare programs [2] - Perdoceo Education Corporation is recognized for its career-focused online learning programs, which are becoming more valuable as traditional college degrees lose appeal due to student debt concerns [3] Group 2 - Established in 1994, Perdoceo Education Corporation is an Illinois-based provider of postsecondary education, committed to delivering quality education through innovative online and campus-based programs [4]

Core Insights - Investors in the Schools sector should consider Perdoceo Education (PRDO) and Universal Technical Institute (UTI) for potential value opportunities [1] Valuation Metrics - Perdoceo Education has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to Universal Technical Institute, which has a Zacks Rank of 3 (Hold) [3] - PRDO's forward P/E ratio is 13.29, significantly lower than UTI's forward P/E of 25.95, suggesting PRDO may be undervalued [5] - The PEG ratio for PRDO is 0.89, while UTI's PEG ratio is 1.73, indicating PRDO's expected earnings growth is more favorable [5] - PRDO's P/B ratio is 2.21, compared to UTI's P/B of 4.88, further supporting PRDO's valuation attractiveness [6] Value Grades - Based on various valuation metrics, PRDO holds a Value grade of A, while UTI has a Value grade of C, indicating PRDO is viewed as a better value investment [6][7]

Company Performance - Perdoceo Education (PRDO) has returned approximately 24.1% year-to-date, outperforming the Consumer Discretionary sector's average return of 11.8% [4] - The Zacks Consensus Estimate for PRDO's full-year earnings has increased by 1.2% over the past 90 days, indicating improving analyst sentiment [3] Industry Context - Perdoceo Education is part of the Schools industry, which consists of 18 individual stocks and currently ranks 33 in the Zacks Industry Rank, with an average gain of 8% this year [5] - The Consumer Discretionary sector includes 253 individual stocks and holds the 9 position in the Zacks Sector Rank [2] Comparison with Peers - Another notable performer in the Consumer Discretionary sector is Rush Street Interactive, Inc. (RSI), which has achieved a year-to-date return of 58.9% [4] - Rush Street Interactive is categorized under the Gaming industry, which has 39 stocks and is ranked 105, with an industry return of +24.3% since the beginning of the year [6]