Education Management Earnings Preview: Can This Streak Continue?

Education Management (NASDAQ:EDMC) will report earnings after markets close on Wednesday, May 1st. Education Management Corporation provides proprietary post-secondary education in the United States. The Company offers, through its operating units, associate’s and bachelor’s degree programs and non-degree programs in the areas of design, media arts, culinary arts, fashion, and professional development.

Here is your Cheat Sheet to Education Management Earnings:

Earnings Expectations: Analysts expect earnings of $0.20 per share on revenues of $630.33 million.

Analyst Trends:

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 $0.07 to a loss $0. For the current year, the average estimate is a profit of $0.42, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Education Management has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 1,684 2,011 2,509 2,888 2,761
Diluted EPS ($) 0.55 0.87 1.22 1.66 -11.97

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 737.19 702.50 639.18 609.56 654.90
Diluted EPS ($) 0.49 -3.31 -9.512 -0.11 0.25

Past Performance:
Education Management has beat analyst estimates 4 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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