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 -1.90% change in stock price 10 days leading up to the earnings, and a -2.15% change 10 days following the report. On the earnings day itself, the stock moves by +1.83%. 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
311.46M
2.89%
1.80%
Gross Margin
46.42%
-4.97%
-0.88%
Operating Margin
13.20%
-34.03%
8.91%
Net Margin
8.13%
-37.12%
-10.36%
EPS
1.05
-35.58%
-8.70%
No Data Available
STRA Earnings Analysis
Strategic Education Inc Corporation (STRA.O) Earnings Conference Call
Positive
Strong Revenue Growth: Revenue increased 8% for the full year 2024, indicating strong overall growth.
Profitability Improvement: Operating income increased 26%, showcasing improved profitability.
Earnings Per Share Growth: Adjusted earnings per share grew 31% to $4.87, reflecting strong financial performance.
Enrollment Growth in Higher Education: US Higher Education segment saw a 6% increase in average total enrollment, demonstrating demand for educational services.
Corporate Partnership Enrollment Growth: Employer affiliated enrollment in US Higher Education grew 16%, highlighting the strength of corporate partnerships.
Stable Student Retention Rates: Student retention in US Higher Education remained stable at approximately 87%, indicating effective student engagement strategies.
Segment Revenue Growth: Australia and New Zealand segment revenue grew 11% on a constant currency basis, driven by enrollment growth and higher revenue per student.
Record Revenue Growth: Education Technology Services segment achieved record revenue growth of over 30%, surpassing $100 million.
Subscriber and Revenue Growth: Sophia Learning grew both subscribers and revenue by 35%, indicating strong market acceptance of the platform.
Corporate Partnership Expansion: Workforce Edge added 11 corporate partners, expanding its reach to over 3.8 million employees, enhancing its corporate partnership network.
Enhanced Employee Education Access: Expanded partnership with Best Buy to an all-inclusive program, increasing accessibility for employees to earn degrees.
Strong Cash Flow Generation: Generated $217 million pretax cash from operations, demonstrating strong cash flow generation.
Shareholder Value Commitment: Returned about $75 million to owners through dividends and share repurchases, reflecting commitment to shareholder value.
Debt Repayment and Refinancing: Repayment of $61 million on revolver and refinancing of a $250 million revolver, improving financial stability.
Negative
Higher Education Revenue Decline: US Higher Education revenue decreased slightly in the fourth quarter due to higher scholarships and a mix shift of employer affiliated students.
Operating Income vs. Revenue Growth: The Australia and New Zealand segment's operating income only increased by 3% in 2024, indicating slower growth compared to revenue growth of 11%.
Increased Operating Expenses: In the fourth quarter, operating expenses were higher due to one-time implementation costs associated with a new partnership, which could impact profitability.
Regulatory Impact on Enrollment: The company is still studying the potential impact of new regulations on international student immigration in Australia, indicating uncertainty in future enrollment.
US Higher Education Revenue Concerns: Despite overall revenue growth, the slight decline in US Higher Education revenue in the fourth quarter raises concerns about sustainability in that segment.
STRA FAQs
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STRA Earning Call Sentiment
Strategic Education, Inc. (STRA) Q4 2024 Earnings Call Transcript
STRA.O
-0.96%Positive
The earnings call summary shows strong financial performance with revenue growth, increased operating income, and robust cash flow. The company is addressing regulatory risks and competitive pressures effectively, with strategic pivots in marketing and partnerships. Despite some uncertainties in guidance, the overall sentiment is positive due to strong financial metrics, successful debt repayment, and shareholder returns. The market cap suggests moderate stock price movement, likely in the positive range.
