(STRA) Strayer Education, Inc. – Return on Equity Crushes Industry Average
Strayer Education, Inc. (STRA) is seeing more upward revisions of the Zacks Consensus Estimate. Analysts polled by Zacks are calling for full-year earnings of $7.50 per share, up from $7.27 over the past 2 months. In late August, when STRA was previously featured as a Growth and Income pick, the Zacks Consensus Estimate stood at $7.48.
For 2010, analysts are forecasting earnings of $9.24 per share, which was increased from $8.88.
The third-quarter Zacks Consensus Estimate of $1.16 per share stands above the 2 months-ago projection of $1.05.
Strayer Education is scheduled to release third-quarter earnings on October 22.
For the second-quarter, STRA saw earnings of $2.00 per share, topping the previous year’s $1.50 and exceeding the Zacks Consensus Estimate by 2%. Revenues jumped 29% year-over-year to $125.9 million thanks to a boost in enrollment and a 5% rise in tuition.
Stellar Fundamentals
Strayer continues to boast a solid balance sheet, showing no debt. The company’s return on equity (ROE) of 56% squashes the industry average of 16%. Strayer’s net profit margin of 21%, more than doubles the industry average of 9%. STRA also pays an industry-leading dividend yield of 1%.
Zacks Investment Research
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