Results: Perdoceo Education Corporation Beat Earnings Expectations And Analysts Now Have New Forecasts

Perdoceo Education Corporation (NASDAQ:PRDO) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of US$170m arriving 3.2% ahead of forecasts. Statutory earnings per share (EPS) were US$0.57, 9.6% ahead of estimates. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

See our latest analysis for Perdoceo Education

Taking into account the latest results, the current consensus from Perdoceo Education's one analyst is for revenues of US$680.0m in 2025. This would reflect a modest 4.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 12% to US$2.27. In the lead-up to this report, the analyst had been modelling revenues of US$685.8m and earnings per share (EPS) of US$2.25 in 2025. So it's pretty clear that, although the analyst has updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 6.7% to US$32.00despite there being no meaningful change to earnings estimates. It could be that the analystare reflecting the predictability of Perdoceo Education's earnings by assigning a price premium.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Perdoceo Education's past performance and to peers in the same industry. It's clear from the latest estimates that Perdoceo Education's rate of growth is expected to accelerate meaningfully, with the forecast 3.3% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 1.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 10% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Perdoceo Education is expected to grow slower than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analyst holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Perdoceo Education going out as far as 2025, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Perdoceo Education you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.