Higher education company Strategic Education (NASDAQ:STRA) will be announcing earnings results this Wednesday before market hours. Here’s what investors should know.
Strategic Education beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $303.6 million, up 4.6% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates. It reported 87,854 domestic students, flat year on year.
Is Strategic Education a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Strategic Education’s revenue to grow 3.5% year on year to $323.3 million, slowing from the 8.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.43 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Strategic Education has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.9% on average.
Looking at Strategic Education’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Hasbro’s revenues decreased 1.5% year on year, beating analysts’ expectations by 11.2%, and Levi's reported revenues up 6.4%, topping estimates by 5.8%. Hasbro traded down 3.3% following the results while Levi's was up 11.1%.
Read our full analysis of Hasbro’s results here and Levi’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 9.6% on average over the last month. Strategic Education is down 7.3% during the same time and is heading into earnings with an average analyst price target of $102.67 (compared to the current share price of $78.90).
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