Strayer Education (STRA) Stock Forecast & Price Target

Strategic Education Inc. demonstrated robust financial performance, with a significant 41.3% increase in adjusted diluted earnings per share (EPS) on a constant currency basis, reaching $1.64. Revenue for the third quarter saw a notable rise of 5.1% year-over-year, totaling $321.7 million, reflecting solid operational momentum driven by the company's diverse education offerings and successful corporate partnerships. Additionally, employer-affiliated enrollment hit an all-time high, constituting 32.7% of total enrollment in the U.S. Higher Education segment, which underscores the company’s strong market position and effective strategy in meeting the educational needs of the workforce.

Strategic Education Inc. has experienced a decline in total student enrollment, decreasing 2.1% to 18,808 year-over-year, contributing to a negative sentiment regarding its growth prospects. Additionally, the Australia/New Zealand segment reported a 2.8% drop in revenue and a 3.1% decline in student enrollment, further exacerbating concerns about the company's performance in key markets. Moreover, both free cash flow and cash flow from operations declined by 5.2% and 3.0%, respectively, highlighting challenges in maintaining financial health amid decreased revenues and enrollment numbers.