Strayer Education Earnings: Here’s Why Investors are Selling Shares Now

Strayer Education Inc. (NASDAQ:STRA) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 9.86%.

Strayer Education Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 308.33% to $1.47 in the quarter versus EPS of $2.30 in the year-earlier quarter.

Revenue: Decreased 8.91% to $141.93 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Strayer Education Inc. reported adjusted EPS income of $1.47 per share. By that measure, the company beat the mean analyst estimate of $1.44. It missed the average revenue estimate of $145.25 million.

Quoting Management:

Key Stats (on next page)…

Revenue increased 14.22% from $124.26 million in the previous quarter. EPS increased 308.33% from $0.36 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 profit of $1.68 to a profit $1.71. For the current year, the average estimate has moved up from a profit of $5.74 to a profit of $5.75 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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