The following is a summary of the Perdoceo Education Corporation (PRDO) Q2 2024 Earnings Call Transcript:
Financial Performance:
Perdoceo Education reported Q2 net income of $38.4 million, or $0.57 per diluted share, with adjusted earnings per diluted share increasing to $0.60.
Revenue for the quarter was $166.7 million, a decrease of 10.6% year-over-year, mainly due to operational changes at the AIU System.
The quarterly per share dividend was increased by 18.2% to $0.13, payable on September 13, 2024.For full-year 2024, Perdoceo updated its adjusted operating income outlook to range between $179 million and $190 million.
Business Progress:
Achieved high levels of student retention and engagement leading to better than expected revenue results.
Announced the acquisition of the University of St. Augustine for Health Sciences, marking Perdoceo's foray into health sciences, expected to be immediately accretive to adjusted operating income starting 2025.
Continued investment in technology to enhance academic experiences and operational effectiveness.
Opportunities:
Strong retention trends are expected to persist due to federal student aid initiatives, supporting revenue outlook for H2 2024.
Corporate engagement programs at CTU and AIU System show potential for revenue and enrollment growth.
Risks:
Lower revenue at AIU System due to lagged impact from previous operational changes.
Potential operational changes required to comply with updates from the Department of Education could impact future performance.
More details: Perdoceo Education IR
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