Perdoceo Education (PRDO) Stock Forecast & Price Target

Perdoceo Education Corp reported a significant increase in total student enrollment at the American InterContinental University (AIUS), rising 7.1% to 10,600 students, contributing to positive organic growth within its student base. The company's segment operating income also demonstrated strong performance, increasing by 7.9% to $46.3 million with an improved margin of 39.2%, underscoring enhanced profitability driven by higher revenue. Additionally, free cash flow surged by 26.8% to $178.8 million year-to-date, reflecting robust financial health and operational efficiency.

Perdoceo Education Corp's segment operating income experienced a 6.5% decline to $12.1 million, with margins decreasing from 24.1% to 22.1% largely due to a non-recurring expense benefit recorded in the previous year. The American InterContinental University System, accounting for 26.8% of total revenues, saw a 1.2% revenue drop to $56.7 million amid a 2.9% decrease in total student enrollment to 10,100, attributed to fewer enrollment days this quarter compared to last year. Additionally, the segment reported an operating loss of $1.7 million, impacted by substantial depreciation and amortization expenses related to acquired assets, raising concerns about the overall financial health of the company.