STRA Earnings Prediction
The chart below shows how STRA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, STRA sees a -3.77% change in stock price 10 days leading up to the earnings, and a -2.74% change 10 days following the report. On the earnings day itself, the stock moves by +3.24%. This data can give you a slight idea of what to expect for the next quarter's release.
STRA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
305.96M
7.00%
-2.02%
Gross Margin
46.83%
5.59%
-1.89%
Operating Margin
12.12%
18.59%
-13.80%
Net Margin
9.07%
40.40%
-5.22%
EPS
1.15
49.35%
-7.26%
No Data Available
STRA Earnings Analysis
Strategic Education, Inc. Common Stock Corporation (STRA.O) Earnings Conference Call
Positive
Q3 Revenue Increase: 1. Revenue Growth: Strategic Education's revenue increased by 6% to $304 million in Q3 2024, reflecting strong performance across all business segments.
Operating Income Increase: 2. Operating Income Improvement: Operating income rose by 13% to $37 million, resulting in an operating margin increase to 12.1%.
Earnings Per Share Rise: 3. Earnings Per Share Increase: Adjusted earnings per share reached $1.15, marking a 19% increase compared to the previous year.
U.S. Higher Education Enrollment Growth: 4. Enrollment Growth in U.S. Higher Education: Total enrollment in U.S. higher education grew by 5%, with employer-affiliated enrollment increasing by 13%, highlighting the strength of corporate partnerships.
Education Technology Revenue Surge: 5. Strong Performance in Education Technology Services: Revenue from the Education Technology Services segment grew by 26%, with operating income increasing by 30%, driven by a 35% revenue increase from Sophia Learning.
Negative
Revenue per Student Decline: 1. Declining Revenue per Student: Revenue per student in U.S. higher education decreased by 2% in the quarter, indicating a potential long-term downward trend as the company shifts towards more employer-affiliated enrollments.
International Student Enrollment Caps: 2. International Student Enrollment Risk: The Australian government proposed caps on international student enrollment, potentially halving the number of new international students, which could negatively impact future enrollment growth in Australia and New Zealand.
Enrollment Growth Decline: 3. Slower Enrollment Growth: U.S. higher education enrollment growth slowed to mid-single digits, down from previous high single-digit growth rates, suggesting a challenging environment for maintaining previous growth levels.
Operating Expenses Outlook: 4. Increased Operating Expenses: Despite lower-than-expected expenses this quarter, the company indicated that expenses typically peak in Q3 due to marketing spend, which could pressure margins in future quarters.
Future Demand Uncertainty: 5. Uncertain Future Demand: The company acknowledged that the demand environment remains healthy, but the shift to employer-affiliated enrollments may lead to a more stable but potentially lower growth trajectory moving forward.
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STRA Earning Call Sentiment
Strategic Education, Inc. (STRA) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
STRA.O
1.09%Positive
The earnings call shows strong financial performance with significant growth in revenue and operating income, especially in Education Technology Services. The share repurchase program and debt reduction are positive indicators for financial health. Despite potential risks from international student caps in Australia, the management's optimistic guidance and strategic investments in growth areas like Sophia Learning suggest positive future prospects. The market cap suggests a moderate reaction. Overall, the sentiment leans positive with potential for a 2% to 8% stock price increase over the next two weeks.