Grand Canyon Education Q3 Profit Beats View; Stock Up

(RTTNews) - Grand Canyon Education Inc.'s (LOPE) third quarter net income increased 16.0% to $41.47 million from $35.74 million in the prior year. On a per share basis, net income was $1.42 up from $1.19 in the previous year.

LOPE closed Wednesday's regular trading at $160.15 up $20.40 or 14.60%. Adjusted net income per share for the third quarter rose to $1.48 from $1.26 in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.47 per share for the third quarter. Analysts' estimates typically exclude special items.

Service revenue for the third quarter was $238.3 million, an increase of $16.4 million, or 7.4%, as compared to service revenue of $221.9 million in the prior year. The increase year over year in service revenue was primarily due to an increase in enrollments at Grand Canyon University, largest university partner ("GCU") to 123,002 at September 30, 2024, an increase of 4.0% over enrollments at September 30, 2023, an increase in university partner enrollments at our off-campus classroom and laboratory sites to 5,888 at September 30, 2024, an increase of 8.1% over enrollments at September 30, 2023, which includes 913 and 510 GCU students at September 30, 2024 and 2023, respectively, and an increase in revenue per student year over year. Analysts expected revenue of $ 239.7 million for the quarter.

Looking ahead for the fourth quarter, the company expects earnings per share to be between $2.86 and $2.89; and Service revenue of between $289.0 million and $290.0 million. Analysts expect the company to report earnings of $2.91 per share and revenues of $289.3 million for the fourth quarter.

For fiscal year 2024, the company projects earnings per share between $7.76 and $7.79; and service revenue of between $1.029 billion and $1.030 billion. Wall Street currently is looking for fiscal year 2024 earnings of $7.99 per share on annual revenues of $1.03 billion.

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