What Happened?
Shares of higher education company Perdoceo Education (NASDAQ:PRDO) jumped 3.2% in the afternoon session after the company reported strong second-quarter results that surpassed analyst expectations for both earnings and revenue. The education provider posted revenue of $209.6 million, a 25.7% increase from the previous year, driven by a 17.4% rise in total student enrollments. The company's adjusted earnings per share landed at $0.67 and surpassed the consensus estimate of $0.60. In a show of confidence, management boosted shareholder returns. The board authorized a new $75 million share buyback program and approved a 15.4% increase in the quarterly dividend. The company also provided an optimistic full-year forecast, which further bolstered investor sentiment.
After the initial pop the shares cooled down to $29.63, up 2.8% from previous close.
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What Is The Market Telling Us
Perdoceo Education’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 22.5% on the news that the company reported strong first quarter 2025 results with revenue and EPS exceeding Wall Street's estimates. In addition, next quarter's EPS guidance topped analysts' expectations. What's notable is the 16.7% growth in total student enrolment, indicating that the demand remained robust. Overall, we think this was a solid quarter with some key areas of upside.
Perdoceo Education is up 13.1% since the beginning of the year, but at $29.63 per share, it is still trading 13.1% below its 52-week high of $34.10 from June 2025. Investors who bought $1,000 worth of Perdoceo Education’s shares 5 years ago would now be looking at an investment worth $2,230.
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