Strategic Education (NASDAQ:STRA) Releases Quarterly Earnings Results, Misses Estimates By $0.33 EPS

Strategic Education (NASDAQ:STRA) announced its quarterly earnings data on Thursday. The health services provider reported $1.42 earnings per share for the quarter, missing the consensus estimate of $1.75 by ($0.33), FiscalAI reports. The company had revenue of $305.93 million during the quarter, compared to the consensus estimate of $329.81 million. Strategic Education had a net margin of 9.98% and a return on equity of 8.75%. Strategic Education’s revenue was up .8% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.30 EPS.

Here are the key takeaways from Strategic Education’s conference call:

• Education Technology Services (ETS) revenue grew 21% to $42M, driven by a 40% increase in Sophia subscribers and Workforce Edge partnerships, with ETS operating income up 42% to $20M and now representing 46% of consolidated operating income.
• Employer‑affiliated enrollment in U.S. Higher Education rose 10% to a record 34.5%, and healthcare enrollments also grew 10%, now accounting for over half of U.S. HE enrollment, supporting the company’s employer‑focused strategy.
• Management cited AI and productivity initiatives that reduced adjusted operating expenses ~2%, drove 3% operating income growth and expanded consolidated margin to 14.3%, and expressed high confidence in hitting the year’s margin improvement targets.
• Australia & New Zealand faces headwinds with total enrollment down 3% (revenue down ~4% on a constant currency basis), slower visa approvals and regulatory caps contributing to a seasonal $2.4M operating loss and uncertainty around full‑year total enrollment growth.
• Capital allocation remained shareholder‑friendly with a quarterly dividend and ~493k shares repurchased for $40M, leaving approximately $200M available under the buyback authorization.

Strategic Education Stock Down 13.1%

STRA traded down $10.98 during trading on Thursday, reaching $72.64. 392,268 shares of the stock traded hands, compared to its average volume of 273,102. The stock has a market capitalization of $1.64 billion, a PE ratio of 13.40, a P/E/G ratio of 0.80 and a beta of 0.53. The stock’s 50-day moving average is $80.72 and its 200 day moving average is $80.70. Strategic Education has a 12 month low of $70.50 and a 12 month high of $93.45.

Strategic Education Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, March 16th. Shareholders of record on Monday, March 9th were given a dividend of $0.60 per share. The ex-dividend date of this dividend was Monday, March 9th. This represents a $2.40 dividend on an annualized basis and a yield of 3.3%. Strategic Education’s dividend payout ratio is 44.28%.

Insider Activity at Strategic Education

In related news, Chairman Robert S. Silberman acquired 718 shares of the business’s stock in a transaction dated Friday, March 13th. The shares were bought at an average price of $80.82 per share, with a total value of $58,028.76. Following the transaction, the chairman directly owned 319,870 shares of the company’s stock, valued at $25,851,893.40. This trade represents a 0.22% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, General Counsel Lizette Benedi Herraiz sold 7,598 shares of the stock in a transaction dated Friday, March 13th. The stock was sold at an average price of $79.97, for a total transaction of $607,612.06. Following the transaction, the general counsel directly owned 58,562 shares in the company, valued at $4,683,203.14. This trade represents a 11.48% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 62,420 shares of company stock worth $4,843,218 over the last quarter. Company insiders own 3.60% of the company’s stock.

Hedge Funds Weigh In On Strategic Education

A number of institutional investors and hedge funds have recently made changes to their positions in STRA. Mercer Global Advisors Inc. ADV acquired a new stake in shares of Strategic Education in the 3rd quarter worth about $398,000. Zurcher Kantonalbank Zurich Cantonalbank raised its holdings in shares of Strategic Education by 17.0% in the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 4,424 shares of the health services provider’s stock worth $381,000 after acquiring an additional 644 shares during the last quarter. XTX Topco Ltd acquired a new stake in shares of Strategic Education in the 4th quarter worth about $380,000. Dark Forest Capital Management LP acquired a new stake in shares of Strategic Education in the 3rd quarter worth about $353,000. Finally, Mackenzie Financial Corp acquired a new stake in shares of Strategic Education in the 3rd quarter worth about $325,000. Institutional investors own 93.27% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts recently commented on STRA shares. Barrington Research reiterated an “outperform” rating and set a $105.00 price target on shares of Strategic Education in a report on Monday, January 26th. Zacks Research upgraded Strategic Education from a “hold” rating to a “strong-buy” rating in a report on Monday, March 2nd. Truist Financial downgraded shares of Strategic Education from a “buy” rating to a “hold” rating and dropped their price target for the company from $95.00 to $85.00 in a research report on Tuesday, March 24th. Wall Street Zen upgraded shares of Strategic Education from a “buy” rating to a “strong-buy” rating in a research report on Saturday, April 18th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Strategic Education in a research report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, Strategic Education currently has a consensus rating of “Moderate Buy” and a consensus target price of $92.67.

About Strategic Education

Strategic Education, Inc is a publicly traded higher education services holding company headquartered in Herndon, Virginia. Through its primary operating subsidiaries, Strayer University and Capella University, the company delivers degree programs and professional development opportunities to working adults. Its offerings span undergraduate and graduate degrees, certificates, continuing education, and workforce training in fields such as business, technology, health services, education, and public administration.

Strayer University, with a network of physical campuses across the United States complemented by an online platform, provides associate’s through doctoral degrees designed to accommodate non-traditional students.