Strayer Education (STRA) Stock Forecast & Price Target

Strategic Education Inc. demonstrated robust financial performance, highlighted by a 41.3% increase in adjusted diluted EPS on a constant currency basis, reaching $1.64. The company experienced a 5.1% growth in revenue for the third quarter, totaling $321.7 million, underscoring the strength of its corporate partnerships, reflected in an 8.6% year-over-year increase in employer-affiliated enrollment, which now constitutes 32.7% of total U.S. Higher Education enrollment. Additionally, the Education Technology Services segment contributed positively to overall revenue, and the healthcare portfolio within U.S. Higher Education saw a significant enrollment growth of 7% year-over-year, further solidifying the company's strong market position.

Strategic Education Inc. experienced a decline in total student enrollment, decreasing by 2.1% year-over-year, signaling potential challenges in attracting and retaining students across its segments. Additionally, the revenue from the Australia/New Zealand segment fell by 2.8%, reflecting broader difficulties in this market, while unaffiliated enrollment for the company has seen its fourth consecutive quarter of decline, indicating a troubling trend for future growth. Furthermore, both free cash flow and cash flow from operations decreased by 5.2% and 3.0%, respectively, in the first half of the fiscal year, raising concerns about the company’s financial stability and operational efficiency.