Strayer Education (STRA) Stock Forecast & Price Target

Strategic Education Inc. reported a significant increase in adjusted diluted earnings per share (EPS), rising by 41.3% to $1.64 on a constant currency basis, reflecting substantial profitability improvements. The company also achieved a 5.1% year-over-year revenue growth, totaling $321.7 million, indicating a solid demand for its education services. Additionally, employer-affiliated enrollment reached a record high of 28,004, comprising 32.7% of total U.S. Higher Education (USHE) enrollment, underscoring the strength of its corporate partnerships and the effectiveness of its education offerings in addressing job market needs.

Strategic Education Inc. has reported a decline in total student enrollment, which decreased by 2.1% year-over-year to 18,808, and unaffiliated enrollment fell by 5.1%, marking the fourth consecutive quarter of declines. Additionally, the Australia/New Zealand segment experienced a revenue drop of 2.8% to $69.1 million compared to the previous year, signaling potential challenges in that market. Despite a slight improvement in consolidated bad debt expense, the overall outlook remains negative due to these concerning trends in enrollment and revenue across multiple segments.