Perdoceo Education (PRDO) Stock Forecast & Price Target

Perdoceo Education Corp has demonstrated strong enrollment growth, with total student enrollment at American InterContinental University increasing by 7.1% to 10,600, which represents 23% of the company’s total enrollment. The company also reported a 25.7% increase in revenue for the second quarter, reaching $209.6 million, driven by continued demand from Colorado Technical University and American InterContinental University, along with a significant revenue contribution from the acquisition of the University of St. Augustine for Health Sciences. Additionally, segment operating income rose 7.9% to $46.3 million, reflecting a healthy operating margin of 39.2%, underscoring the company's effective management of its academic offerings and growth strategy.

Perdoceo Education Corp's segment operating income has experienced a decline of 6.5% year-over-year, decreasing to $12.1 million with a margin of 22.1%, primarily due to the absence of a non-recurring expense benefit that positively impacted the previous year's figures. Additionally, the company reported a segment operating loss of $1.7 million, influenced by $7.2 million in depreciation and amortization expenses related to acquired assets. Despite management's guidance for Q3/25 indicating an operating income forecast above previous estimates, the overall financial metrics reflect underlying challenges that may raise concerns regarding future profitability.