
Strayer Education (STRA) Stock Forecast & Price Target
Strayer Education (STRA) Analyst Ratings
Bulls say
Strategic Education Inc. demonstrated solid financial performance in the fourth quarter, with a constant currency revenue increase of 2.7% to $310.8 million, and a notable growth in free cash flow, which surged 60.5% to $128.7 million in 2024 compared to the previous year. The company also experienced a rise in segment operating income by 34.1%, with a margin of 38.8%, reflecting effective management of costs despite increased hiring to enhance support services. Looking ahead, the company's strategic investments are projected to boost revenues significantly to approximately $1.5 billion by 2028, alongside an improvement in adjusted operating margins to 22%, underscoring a positive long-term growth outlook.
Bears say
Strategic Education Inc. reported a substantial decline in financial performance, with adjusted EBITDA decreasing by 19.2% to $60.1 million and adjusted diluted EPS falling 24.4% to $1.27 compared to the previous year. The company's U.S. Higher Education segment experienced a 1.5% drop in revenue to $214.3 million, attributed to a decrease in revenue per student due to higher scholarship levels, leading to a significant 45.6% decrease in segment operating income. Additionally, the company's earnings outlook is further constrained by a projected 10% decrease in forward-looking EPS estimates, indicating potential difficulties ahead in maintaining profitability.
This aggregate rating is based on analysts' research of Strayer Education and is not a guaranteed prediction by Public.com or investment advice.
Strayer Education (STRA) Analyst Forecast & Price Prediction
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