Strategic Education (STRA) to report earnings tomorrow: here is what to expect

What happened

Strategic Education is scheduled to report earnings this Thursday before the market opens. Last quarter, revenue was $337.3 million, up 4.9% year over year, while earnings per share missed analysts’ estimates and domestic student enrollment was 85,894, unchanged from a year earlier.

Confirmed

Global impact / market context

The report will show whether revenue growth is keeping pace with expectations and whether earnings per share improve after last quarter’s shortfall. Because domestic enrollment was flat, changes in student numbers could help explain revenue performance and indicate whether the business is gaining or losing momentum.

Analyst inference

Analysts expect revenue to rise 2.1% year over year this quarter, slower than the 4.6% increase in the same quarter last year. Their estimates have generally been unchanged over the past month, while the company has missed revenue forecasts several times in two years.

Confirmed

What to watch

1. Check reported revenue against the expected 2.1% year-over-year increase; a stronger or weaker result would show whether the anticipated slowdown is occurring. Confirmed
2. Compare earnings per share with analysts’ forecasts and last quarter’s result, when the company missed estimates; the article provides no forecast figure for this quarter. Confirmed
3. Look for an update on domestic student enrollment: growth could support future revenue, while continued flat numbers may limit the company’s ability to accelerate growth. Analyst inference

Evidence

• stockstory.org