Will Strong Q3 Results and Capital Returns Shift the Narrative for Perdoceo Education (PRDO)?

• Perdoceo Education Corporation recently reported third quarter 2025 earnings, highlighted by year-over-year revenue growth to US$211.87 million and net income of US$39.85 million, alongside a quarterly dividend declaration and the completion of a buyback of 660,000 shares for US$20.64 million.
• An interesting insight is that Wall Street analysts responded positively to these updates by raising earnings estimates and the stock currently sits in the top quintile for favorable earnings estimate revisions, as per Zacks Rank.
• We’ll now explore how Perdoceo Education’s increased revenue and profitability in the latest quarter may affect the company's investment outlook.

Find companies with promising cash flow potential yet trading below their fair value.

Perdoceo Education Investment Narrative Recap

To be a shareholder in Perdoceo Education, one generally needs confidence in the company’s ability to drive sustainable enrollment and revenue growth, not just via acquisitions like St. Augustine but also through consistent organic improvements. The latest results show strong revenue and net income growth, which supports the current positive sentiment, yet the most significant short term catalyst remains ongoing enrollment momentum, while the main risk is continued heavy reliance on recent acquisitions, and this dynamic is largely unchanged by the recent news.

Among the recent updates, the company’s completion of a US$20.64 million buyback, repurchasing 660,000 shares in the latest quarter, stands out. This action follows a period of earnings growth and coincides with analyst upgrades, underscoring an emphasis on shareholder returns, but highlights the continuing question of how much growth can be driven organically versus through financial engineering. In contrast, investors should also be mindful of ongoing risks related to future integration challenges if new acquisitions stall or underperform...

Read the full narrative on Perdoceo Education (it's free!)

Perdoceo Education's narrative projects $987.8 million revenue and $179.9 million earnings by 2028. This requires 8.7% yearly revenue growth and a $25.5 million earnings increase from $154.4 million currently.

Uncover how Perdoceo Education's forecasts yield a $42.00 fair value, a 39% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members submitted four fair value estimates for Perdoceo Education, ranging widely from US$24.00 up to US$110.55. While forecasts differ, many point to the role of ongoing enrollment growth and acquisition integration in shaping future earnings potential.

Explore 4 other fair value estimates on Perdoceo Education - why the stock might be worth 20% less than the current price!

Build Your Own Perdoceo Education Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Perdoceo Education research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Perdoceo Education research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Perdoceo Education's overall financial health at a glance.

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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.

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