Strategic Education Q4 Earnings Top, Revenues Miss, Enrollment Up Y/Y

Strategic Education, Inc. STRA, or SEI, reported mixed results for the fourth quarter of 2024. Its adjusted earnings topped the Zacks Consensus Estimate, while revenues missed the same. On a year-over-year basis, the top line grew while the bottom line tumbled.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The quarter witnessed robust employer-affiliated enrollment, strong growth from Sophia Learning subscriptions and another quarter of total enrollment growth in the Australia/New Zealand segment. However, increased costs and expenses marred the bottom-line growth.Post the earnings announcement, STRA stock slipped 18.5% during Thursday’s trading hours.Inside STRA’s HeadlinesThe company reported adjusted earnings per share (EPS) of $1.27, which topped the Zacks Consensus Estimate of $1.19 by 6.7%. In the year-ago quarter, it reported an adjusted EPS of $1.68.Strategic Education Inc. Price, Consensus and EPS Surprise Strategic Education Inc. price-consensus-eps-surprise-chart | Strategic Education Inc. QuoteTotal revenues of $311.5 million marginally missed the consensus mark of $312 million by 0.2% but increased 2.9% from the year-ago period. On a constant-currency basis, revenues increased 2.7% to $310.8 million in the quarter.Strategic Education’s Segment DetailsU.S. Higher Education (USHE): This segment comprises Strayer and Capella Universities. Its revenues declined 1.5% year over year to $214.3 million due to lower revenue per student.Student enrollment increased 3% to 88,860 students from the year-ago quarter’s level of 86,233 students. FlexPath enrollment was 24% of USHE enrollment compared with 21% a year ago.During the quarter, the operating margin declined to 8.3% from 15.1%, down 680 basis points (bps) from the year-ago quarter.Education Technology Services (ETS): This segment includes Enterprise Partnerships, Sophia Learning and Workforce Edge. Its quarterly revenues increased year over year by 39.3% to $30.5 million, backed by solid growth in Sophia Learning subscriptions employer-affiliated enrollment and gains from a new Workforce Edge employer partnership.Sophia Learning’s average total subscribers increased approximately 29% from the year-ago period’s level. Employer-affiliated enrollment was 30.2% of USHE enrollment compared with 27.7% in the year-ago period. As of Dec. 31, 2024, Workforce Edge had a total of 76 corporate agreements, collectively employing about 3,820,000 employees.ETS’ operating margin was 38.8% in the reported quarter, down 150 bps from a year ago.Australia/New Zealand (ANZ): This segment includes Torrens University, Think Education and Media Design School. Its revenues were $66.7 million, up 5.4% year over year, driven by higher enrollment and revenue-per-student. On a constant-currency basis, revenues rose 4.3% year over year to $66 million.Student enrollment within ANZ rose 3% to 19,825 students during the quarter compared with 19,252 students in the year-ago quarter.The operating margin was 16.1%, down from 23.5% reported in the year-ago period. On a constant-currency basis, the operating income margin was 15.6%, down from 23.5% in the year-ago period.STRA’s Operating HighlightsAdjusted operating income was down to $40.4 million from $56.6 million in the year-ago quarter. The adjusted operating margin of 13% contracted 570 bps from the year-ago quarter.Adjusted EBITDA was $60.1 million, down from $74.4 million in the year-ago quarter.A Glimpse at Strategic Education’s 2024Revenues increased 7.7% year over year to $1.22 billion. On a constant-currency basis, revenues increased 7.8% from 2023.Adjusted operating income increased to $157.3 million from $124.6 million reported a year ago. The adjusted operating margin of 12.9% expanded 190 bps from the year-ago value.Adjusted EBITDA increased year over year to $233.8 million from $196.5 million.Full-year adjusted EPS of $4.87 increased year over year from $3.72.STRA’s Financial DetailsAs of Dec. 31, 2024, SEI had cash and cash equivalents of $137.1 million, down from $168.5 million at 2023-end. There was no long-term debt at the fourth-quarter end compared with $61.4 million at 2023-end.Cash provided by operating activities was $169.3 million in 2024, up from $117.1 million in the year-ago period. In 2024, capital expenditures were $40.6 million compared with $36.9 million a year ago.STRA’s Zacks Rank & Recent Consumer Discretionary ReleasesStrategic Education currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.JAKKS Pacific, Inc. JAKK reported fourth-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate after beating the same in the preceding quarter. However, both metrics improved year over year.The company said its fourth-quarter performance met expectations, with the overall results for the year reflecting strong seasonality, particularly around Halloween and Christmas. It has consistently encouraged customers to adopt its FOB selling model, which allows them to take advantage of larger, more efficient logistics operations.Live Nation Entertainment, Inc.'s LYV fourth-quarter 2024 earnings and revenues surpassed the Zacks Consensus Estimate. The bottom line increased from the prior-year quarter’s level but the top line declined.The company has been benefiting from the pent-up demand for live events and robust ticket sales. It continues to gain from the strong performance of Ticketmaster and higher fan spending. The company is set for further growth in 2025, supported by an extensive global concert pipeline and a record number of stadium shows. LYV remains focused on expanding music-centric venues, which are expected to contribute to double-digit adjusted operating income growth, driving sustained momentum in the coming years.Pool Corporation POOL reported fourth-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom lines declined from the prior-year quarter's actuals.The company's 2024 results underscore the resilience of its business model amid a challenging macroeconomic environment. It reported enhancements to the POOL360 digital ecosystem, including technology rollouts and expanded digital marketing programs, paving a path for increased sales of private-label chemical products. It strengthened its sales center network, adding 10 greenfield locations and completing two acquisitions, bringing its total footprint to 448 locations worldwide.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Strategic Education Inc. (STRA): Free Stock Analysis Report Pool Corporation (POOL): Free Stock Analysis Report JAKKS Pacific, Inc. (JAKK): Free Stock Analysis Report Live Nation Entertainment, Inc. 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