Perdoceo Education (PRDO) Stock Forecast & Price Target

Perdoceo Education Corp experienced a notable increase in total student enrollment at American Intercontinental University, which rose by 7.1% to 10,600, reflecting strong organic growth and an extended academic calendar. The company also reported a significant rise in segment operating income, which grew by 7.9% to $46.3 million, indicating improvements in revenue and margins across its educational offerings. Additionally, free cash flow surged by 26.8% to $178.8 million, further underscoring the company’s strong financial health and operational efficiency.

Perdoceo Education Corp has experienced a decline in segment operating income, which decreased by 6.5% to $12.1 million, reflecting a margin contraction from 24.1% to 22.1%, primarily due to a non-recurring expense benefit reported in the prior year. Additionally, the American InterContinental University System, which accounts for 26.8% of the company's total revenue, reported a 1.2% drop in revenue to $56.7 million, coupled with a 2.9% decline in total student enrollment, signifying weakening demand. Although management has provided guidance for the upcoming quarter that exceeds previous estimates, the underlying issues of decreased operating income and enrollment trends could cast a shadow on the company's future performance.