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Market Overview

Earnings Preview: Perdoceo Education


Perdoceo Education (NASDAQ: PRDO) releases its next round of earnings this Thursday, November 05. Get the latest predictions in Benzinga's essential guide to the company's Q3 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Perdoceo Education EPS is expected to be around $0.35, according to sell-side analysts. Sales will likely be near $173.40 million. In the same quarter last year, Perdoceo Education reported earnings per share of $0.33 on sales of $154.96 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 6.06% increase in the company's EPS figure. Sales would be up 11.9% from the year-ago period. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.37 0.38 0.28 0.24
EPS Actual 0.41 0.42 0.33 0.33
Revenue Estimate 173.57 M 161.63 M 149.90 M 146.70 M
Revenue Actual 176.03 M 170.99 M 158.45 M 154.96 M

Stock Performance

Over the past 52-week period, shares of Perdoceo Education have declined 27.42%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Perdoceo Education is scheduled to hold the call at 17:30:00 ET and can be accessed here.


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Posted-In: Earnings