Perdoceo Education Corporation (NASDAQ:PRDO) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of US$170m arriving 3.2% ahead of forecasts. Statutory earnings per share (EPS) were US$0.57, 9.6% ahead of estimates. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

After the latest results, the one analyst covering Perdoceo Education are now predicting revenues of US$680.0m in 2025. If met, this would reflect a modest 4.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 12% to US$2.27. In the lead-up to this report, the analyst had been modelling revenues of US$685.8m and earnings per share (EPS) of US$2.25 in 2025. So it's pretty clear that, although the analyst has updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analyst reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.7% to US$32.00. It looks as though they previously had some doubts over whether the business would live up to their expectations.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Perdoceo Education's rate of growth is expected to accelerate meaningfully, with the forecast 3.3% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 1.5% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 10% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Perdoceo Education is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analyst reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Perdoceo Education's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Perdoceo Education that you should be aware of.

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