Education Management Earnings: Here’s Why Shares are Up Now

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. Shares are up 0.26%.

Education Management Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 90% to $0.01 in the quarter versus EPS of $0.10 in the year-earlier quarter.

Revenue: Decreased 6.88% to $595.24 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Education Management Corporation reported adjusted EPS income of $0.01 per share. By that measure, the company beat the mean analyst estimate of $-0.02. It beat the average revenue estimate of $583.79 million.

Quoting Management: “We are encouraged by the underlying trends that we are seeing in both new student enrollment and 180-day new student retention. Student achievement and providing an affordable educational experience that prepares our students for employment opportunities in the marketplace is our top priority,” said Edward H. West, Education Management’s President and Chief Executive Officer. “We continue with initiatives to better align our organization with the needs of our students, by providing the right course offerings and a stronger value proposition. We believe these efforts will ultimately lead to rising enrollments and improved financial performance.”

Key Stats (on next page)…

Revenue decreased 6.83% from $638.9 million in the previous quarter. EPS decreased 95.83% from $0.24 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0.09 to a loss $0.08. For the current year, the average estimate is a profit of $0.43, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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