Perdoceo Education (NASDAQ:PRDO) Releases Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Perdoceo beat quarterly expectations: EPS was $0.77 versus analysts’ $0.74 estimate, while revenue reached $215.86 million, above the $211.07 million consensus and up 1.9% year over year.
• Management raised its 2026 adjusted operating income outlook to $260 million–$263 million and expects full-year revenue growth.
• Enrollment increased 1.6% overall, led by AIU System and St. Augustine, while CTU enrollment was relatively flat; management expects AIU enrollment to decline in the fourth quarter partly because of academic-calendar timing.

Perdoceo Education (NASDAQ:PRDO - Get Free Report) released its quarterly earnings data on Thursday. The company reported $0.77 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.74 by $0.03, FiscalAI reports. Perdoceo Education had a return on equity of 18.93% and a net margin of 20.62%. The company had revenue of $215.86 million during the quarter, compared to analysts' expectations of $211.07 million. During the same period last year, the firm posted $0.60 earnings per share. The business's revenue was up 1.9% on a year-over-year basis.

Here are the key takeaways from Perdoceo Education's conference call:

• Third-quarter net income rose to $44.4 million, or $0.70 per diluted share, while revenue increased 1.9% to $215.9 million. Adjusted operating income grew 8.4%, and year-to-date EPS was up 23.5%.
• Enrollment trends were favorable overall: total enrollment rose 1.6%, led by 7.5% growth at AIU System and 3.2% at St. Augustine, where revenue increased 9.8%. St. Augustine’s adjusted operating income also improved, supported by growth and operating efficiencies.
• Management raised its 2026 adjusted operating income outlook to $260 million–$263 million and expects fourth-quarter adjusted operating income of $56.9 million–$59.9 million. It expects full-year revenue growth and says St. Augustine and AIU System should contribute to operating income growth.
• The company ended the quarter with about $777 million in cash, restricted cash, and short-term investments, and continued returning capital through dividends and share repurchases. The proposed South University acquisition is expected to be funded with cash and contribute to adjusted operating income beginning in 2027, subject to closing conditions.
• CTU enrollment was relatively flat, and management expects it to remain so through year-end as record graduations and tough comparisons weigh on reported growth; it expects growth to resume in 2027. AIU System is also expected to report lower enrollment in the fourth quarter due to academic-calendar timing, while the outlook depends on assumptions about student demand, regulation, and legal costs.

Perdoceo Education Stock Up 1.2%

NASDAQ PRDO traded up $0.33 during trading hours on Friday, reaching $26.88. 1,579,108 shares of the company were exchanged, compared to its average volume of 533,601. The stock has a market capitalization of $1.68 billion, a P/E ratio of 10.09, a P/E/G ratio of 0.63 and a beta of 0.76. The business's 50 day simple moving average is $32.15 and its 200-day simple moving average is $33.27. Perdoceo Education has a 1 year low of $26.24 and a 1 year high of $38.50.

Perdoceo Education Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 11th. Stockholders of record on Friday, November 27th will be given a dividend of $0.17 per share. The ex-dividend date of this dividend is Friday, November 27th. This represents a $0.68 annualized dividend and a dividend yield of 2.5%. Perdoceo Education's dividend payout ratio (DPR) is currently 24.82%.

Analysts Set New Price Targets

PRDO has been the topic of a number of analyst reports. Weiss Ratings reiterated a "buy (b)" rating on shares of Perdoceo Education in a research note on Thursday, October 15th. Wall Street Zen downgraded Perdoceo Education from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, Perdoceo Education presently has an average rating of "Moderate Buy" and a consensus target price of $44.00.

Insider Buying and Selling at Perdoceo Education

In related news, CEO Todd S. Nelson sold 46,199 shares of the business's stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $32.89, for a total transaction of $1,519,485.11. Following the sale, the chief executive officer directly owned 301,782 shares in the company, valued at approximately $9,925,609.98. The trade was a 13.28% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Chairman Gregory L. Jackson sold 11,271 shares of the stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $31.78, for a total transaction of $358,192.38. Following the completion of the sale, the chairman directly owned 64,949 shares in the company, valued at approximately $2,064,079.22. The trade was a 14.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.46% of the stock is currently owned by corporate insiders.

About Perdoceo Education

Perdoceo Education Corporation NASDAQ: PRDO is a provider of postsecondary education focused primarily on online learning. Through its institutions, the company offers career-oriented academic programs designed for working adults and other nontraditional students.

Perdoceo's education brands include American InterContinental University and Colorado Technical University, which offer associate, bachelor's, master's and doctoral degree programs in areas such as business, information technology, healthcare, criminal justice and engineering.

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