Perdoceo Education (NASDAQ:PRDO) Posts Earnings Results, Beats Expectations By $0.03 EPS

Perdoceo Education (NASDAQ:PRDO) issued its quarterly earnings results on Thursday. The company reported $0.77 EPS for the quarter, beating the consensus estimate of $0.74 by $0.03, FiscalAI reports. Perdoceo Education had a net margin of 20.62% and a return on equity of 18.93%. The business had revenue of $215.86 million during the quarter, compared to the consensus estimate of $211.07 million. During the same quarter in the prior year, the firm earned $0.60 EPS. The firm’s quarterly revenue was up 1.9% on a year-over-year basis.

Here are the key takeaways from Perdoceo Education’s conference call:

• Third-quarter net income rose to $44.4 million, or $0.70 per diluted share, while revenue increased 1.9% to $215.9 million. Adjusted operating income grew 8.4%, and year-to-date EPS was up 23.5%.
• Enrollment trends were favorable overall: total enrollment rose 1.6%, led by 7.5% growth at AIU System and 3.2% at St. Augustine, where revenue increased 9.8%. St. Augustine’s adjusted operating income also improved, supported by growth and operating efficiencies.
• Management raised its 2026 adjusted operating income outlook to $260 million–$263 million and expects fourth-quarter adjusted operating income of $56.9 million–$59.9 million. It expects full-year revenue growth and says St. Augustine and AIU System should contribute to operating income growth.
• The company ended the quarter with about $777 million in cash, restricted cash, and short-term investments, and continued returning capital through dividends and share repurchases. The proposed South University acquisition is expected to be funded with cash and contribute to adjusted operating income beginning in 2027, subject to closing conditions.
• CTU enrollment was relatively flat, and management expects it to remain so through year-end as record graduations and tough comparisons weigh on reported growth; it expects growth to resume in 2027. AIU System is also expected to report lower enrollment in the fourth quarter due to academic-calendar timing, while the outlook depends on assumptions about student demand, regulation, and legal costs.

Perdoceo Education Stock Performance

Shares of NASDAQ PRDO traded up $0.33 during mid-day trading on Friday, reaching $26.88. 1,579,108 shares of the company traded hands, compared to its average volume of 533,601. The stock has a market cap of $1.68 billion, a PE ratio of 10.09, a price-to-earnings-growth ratio of 0.63 and a beta of 0.76. The company’s fifty day moving average is $32.15 and its two-hundred day moving average is $33.27. Perdoceo Education has a fifty-two week low of $26.24 and a fifty-two week high of $38.50.

Perdoceo Education Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 11th. Stockholders of record on Friday, November 27th will be paid a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 2.5%. The ex-dividend date is Friday, November 27th. Perdoceo Education’s dividend payout ratio is 24.82%.

Analysts Set New Price Targets

Several analysts have recently commented on the company. Wall Street Zen downgraded Perdoceo Education from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Weiss Ratings reissued a “buy (b)” rating on shares of Perdoceo Education in a research report on Thursday, October 15th. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $44.00.

Insider Activity at Perdoceo Education

In other Perdoceo Education news, CEO Todd Nelson sold 46,199 shares of the company’s stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $32.89, for a total transaction of $1,519,485.11. Following the completion of the sale, the chief executive officer owned 301,782 shares of the company’s stock, valued at $9,925,609.98. This represents a 13.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Chairman Gregory L. Jackson sold 11,271 shares of the stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $31.78, for a total value of $358,192.38. Following the transaction, the chairman owned 64,949 shares in the company, valued at approximately $2,064,079.22. This trade represents a 14.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.46% of the stock is currently owned by insiders.

Perdoceo Education Company Profile

Perdoceo Education Corporation (NASDAQ: PRDO) is a provider of postsecondary education focused primarily on online learning. Through its institutions, the company offers career-oriented academic programs designed for working adults and other nontraditional students.

Perdoceo’s education brands include American InterContinental University and Colorado Technical University, which offer associate, bachelor’s, master’s and doctoral degree programs in areas such as business, information technology, healthcare, criminal justice and engineering.