Strayer Education (STRA) Stock Forecast & Price Target

Strategic Education Inc. reported a significant increase in adjusted diluted EPS, rising 41.3% to $1.64 on a constant currency basis, which underscores the company's strong financial performance. The third-quarter revenue also showed resilience, increasing 5.1% year-over-year to $321.7 million, driven by continued growth in the Education Technology Services segment and expanded healthcare enrollment. Notably, employer-affiliated enrollment reached a record high of 28,004, reflecting robust partnerships and contributing to a positive outlook for the company’s growth trajectory in the U.S. Higher Education segment.

Strategic Education Inc. is facing a negative outlook driven by a decline in total student enrollment, which decreased by 2.1% year-over-year, signaling potential weaknesses in attracting and retaining students across its campuses. Additionally, the Australia/New Zealand segment reported a revenue decrease of 2.8% and total student enrollment dropped by 3.1%, both of which fell short of internal estimates and consensus expectations. Furthermore, free cash flow and cash flow from operations have also experienced declines of 5.2% and 3.0%, respectively, indicating potential challenges in financial performance and operational efficiency moving forward.