LOPE Earnings Prediction
The chart below shows how LOPE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, LOPE sees a -1.60% change in stock price 10 days leading up to the earnings, and a +2.06% change 10 days following the report. On the earnings day itself, the stock moves by -0.31%. This data can give you a slight idea of what to expect for the next quarter's release.
LOPE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
292.57M
5.13%
22.78%
Gross Margin
55.42%
0.02%
12.80%
Operating Margin
34.84%
-0.85%
72.30%
Net Margin
27.99%
-3.48%
60.86%
EPS
2.84
4.80%
100.00%
No Data Available
LOPE Earnings Analysis
Grand Canyon Education Inc Corporation (LOPE.O) Earnings Conference Call
Positive
Earnings Beat Expectations: Grand Canyon Education, Inc. beats earnings expectations with reported EPS of $2.95, exceeding expectations of $2.93.
Enrollment Growth Trends: Online enrollment growth of 7.1% and hybrid growth of 14.9% (excluding closed sites) demonstrates strong demand for programs.
Strong Student Retention Rates: Retention rates remain strong, indicating student satisfaction and relevance of programs to career aspirations.
Workforce Development Initiatives: GCU has rolled out 148 new programs tied to labor market opportunities, addressing workforce shortages directly.
Employer Partnership Growth: New starts from employer partnerships increased by 12.5% year-over-year, showcasing effective collaboration with industries.
Tuition Stability and Accessibility: GCU has maintained low tuition increases, averaging approximately 1% per year since 2018, making education more accessible.
Enrollment Growth Trends: The hybrid campus saw a year-over-year enrollment increase of 9.8%, with expectations for continued growth in 2025.
Electricians Pre-Apprenticeship Success: GCU's Center for Workforce Development successfully started 233 students in the electricians pre-apprenticeship program, with high completion rates.
Student Graduation Impact: GCE has helped partner institutions graduate over 183,000 students in six years, addressing national workforce shortages in education and healthcare.
Service Revenue Increase: Service revenue for Q4 2024 was $292.6 million, a 5.1% increase year-over-year, driven by enrollment growth and increased revenue per student.
Q4 Operating Income Performance: Operating income for Q4 2024 was $100 million, with a strong operating margin of 34.2%, indicating efficient operations.
Net Income Increase: Net income increased by 1.4% to $81.9 million, reflecting overall financial health and stability.
Share Repurchase Confidence: The company repurchased 416,497 shares in Q4 2024, demonstrating confidence in its stock value and commitment to returning capital to shareholders.
Negative
Service Revenue Slowdown: Service revenue growth was only 5.1% year-over-year, indicating a slowdown compared to previous periods.
Operating Margin Decline: Operating margin decreased slightly from 35.1% to 34.8%, reflecting increased costs and impairment charges.
Impairment Charge Impact: The company faced a $1.9 million impairment charge related to a terminated software project and costs from closed sites, impacting overall profitability.
Tax Rate Increase Impact: The effective tax rate increased to 21.2% from 19.9%, which may continue to rise due to higher state taxes, affecting net income.
Enrollment Growth Challenges: There is a projected decline in the growth rate of reentries, which could pressure total enrollment growth rates moving forward.
Revenue Per Student Decline: The company anticipates a slight decrease in revenue per student year-over-year due to a mix shift towards lower net tuition rate programs.
Enrollment Growth Constraints: The hybrid growth rate is constrained by capacity issues at several locations, limiting potential enrollment growth.
Rising Legal Expenses: Legal fees are expected to increase in 2025 due to ongoing lawsuits, adding to operational costs.
LOPE FAQs
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LOPE Earning Call Sentiment
Grand Canyon Education, Inc. (NASDAQ:LOPE) Q4 2024 Earnings Call Transcript
LOPE.O
-2.97%Positive
The earnings call presents a mixed picture. Positive factors include a slight EPS beat, increased enrollments, and a robust share repurchase program. However, concerns arise from increased litigation and investment costs, higher tax rates, and a slight dip in operating margins. The Q&A section highlights management's optimism about growth and profitability but lacks clarity on regulatory challenges. With a market cap of $4 billion, the stock is likely to experience moderate volatility, resulting in a neutral sentiment for the next two weeks.
