Education Management Corporation (NASDAQ:EDMC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
Education Management Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 27.27% to $0.24 in the quarter versus EPS of $0.33 in the year-earlier quarter.
Revenue: Decreased 9.05% to $638.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Education Management Corporation reported adjusted EPS income of $0.24 per share. By that measure, the company beat the mean analyst estimate of $0.20. It beat the average revenue estimate of $630.33 million.
Quoting Management: “We are pleased with this quarter’s results as we made progress across multiple objectives,” said Edward H. West, Education Management’s President and Chief Executive Officer. “In addition to the sequential improvement in new student enrollment trends during the quarter, we also experienced improvements in retention as a result of the commitment and efforts made by faculty and staff across our colleges and universities. Our students are at the core of what we do, and we are passionate about helping them achieve their career goals through education that is aligned with real opportunities in the American workforce.”
Key Stats (on next page)…
Revenue decreased 2.44% from $654.9 million in the previous quarter. EPS decreased 4% from $0.25 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.06 to $0. For the current year, the average estimate has moved down from a profit of $0.43 to a profit of $0.42 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)