Perdoceo Education (PRDO) Stock Forecast & Price Target

Perdoceo Education Corp has demonstrated a significant positive trend in student enrollment, with a 7.1% increase at the American InterContinental University, reaching 10,600 students, which reflects organic growth and an expanded academic calendar. The company's segment operating income rose by 7.9% to $46.3 million, achieving a margin of 39.2%, which underscores improved profitability driven by higher revenue. Additionally, total revenue for the second quarter saw a substantial increase of 25.7%, reaching $209.6 million, bolstered by contributions from Colorado Technical University and the recent acquisition of the University of St. Augustine for Health Sciences.

Perdoceo Education Corp has experienced a 6.5% decline in segment operating income, falling to $12.1 million with a reduced margin of 22.1%, attributed primarily to a non-recurring expense benefit in the prior year. Additionally, the company reported a segment operating loss of $1.7 million, significantly impacted by $7.2 million in depreciation and amortization costs related to acquired assets and financing leases. Although management has provided guidance for increased operating income for Q3/25, the overall downward trends in operating income and the presence of substantial losses raise concerns about the company's financial stability and future performance.