Grand Canyon Education Set to Release Q4 Earnings Report
Higher education company Grand Canyon Education is set to release its earnings report tomorrow, and investors are eagerly awaiting the results.
In the previous quarter, Grand Canyon Education exceeded expectations with revenues of $221.9 million, marking a 6.3% increase from the previous year. This growth outperformed analyst predictions by 1%. The company provided solid revenue guidance for the upcoming quarter that aligns with analysts’ expectations.
For the current quarter, analysts are anticipating a year-on-year revenue growth of 6.4% for Grand Canyon Education, reaching $275.2 million. This would further improve on the 2.9% increase in revenue recorded during the same quarter last year. Adjusted earnings are projected to be $2.72 per share.
The majority of analysts covering the company have reaffirmed their estimates in the past month, indicating their confidence in its performance leading up to the earnings release. Notably, Grand Canyon Education has fallen short of Wall Street’s revenue estimates on two occasions in the past two years.
Analyzing the company’s peers in the consumer discretionary segment can provide some insights into what to expect. For instance, Universal Technical Institute saw a remarkable year-on-year top-line growth of 45.6% in the fourth quarter, surpassing analyst estimates by 3.8%. As a result, Universal Technical Institute’s stock experienced a 4.2% surge following the announcement.
The consumer discretionary segment has generally witnessed a positive sentiment among investors in recent times, with stock prices increasing by an average of 4.5% over the past month. Grand Canyon Education’s stock has also gained momentum during this period, rising by 5.6%. Analysts have set a price target of $155 for the company’s shares, which is notably higher than its current trading price of $133.
Analyst comment
Positive news. The market is expected to react positively to Grand Canyon Education’s earnings report, as the company has consistently exceeded expectations and provided solid revenue guidance. Analysts are anticipating a year-on-year revenue growth of 6.4% and adjusted earnings of $2.72 per share. The positive sentiment in the consumer discretionary segment and the company’s recent stock momentum further support the expectation of a positive market response.
