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School Stocks to Watch for Q4 Earnings on Feb 16: LOPE, STRA

Zacks

According to our latest Earnings Preview, 71.4% of consumer discretionary companies have already reported their quarterly results. Of these, 76% have surpassed earnings estimates while 68% have beat revenue expectations. Total earnings of these consumer discretionary companies increased 4.6% on 5.6% higher revenues.

Coming to the school industry within the consumer discretionary sector, enrollments have been sluggish due to regulatory challenges, changes and competition in the higher education industry.

However, the U.S. presidential election had a positive impact on the school industry as shares of for-profit education companies rallied post the victory of Donald Trump. This is largely because Trump had assured relaxed federal regulations for such companies during his campaigns.

So far, some of the leading companies in the school industry have reported their quarterly numbers. DeVry Education Group Inc. DV reported solid second-quarter fiscal 2017 results results, with earnings beating the Zacks Consensus Estimate and revenues almost meeting the same. Universal Technical Institute, Inc. UTI reported narrower-than-expected loss in the first quarter of fiscal 2017.

Two companies from the school industry are set to report their fourth-quarter 2016 results on Feb 16. Let's see how things are shaping up for their respective announcements.

Grand Canyon Education, Inc. LOPE, provider of online postsecondary education services, is slated to release its results after market closes.

Our proven model does not conclusively show a beat for Grand Canyon, as the company has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%.

This is because the company’s Most Accurate estimate and the Zacks Consensus Estimate are pegged at 98 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

As per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat earnings.

Grand Canyon Education, Inc. Price and EPS Surprise

Grand Canyon Education, Inc. Price and EPS Surprise | Grand Canyon Education, Inc. Quote


The company posted a positive surprise of 13.6% in the last reported quarter. Also, the company has beaten estimates in all of the past four quarters, resulting in an average positive surprise of 7.8%.

The Zacks Consensus Estimate for fourth-quarter 2016 earnings is pegged at 98 cents, reflecting an increase of 20.9% year over year, while the consensus for revenues is at $242.29 million, reflecting a 12.2% year-over-year increase.

Strayer Education, Inc. STRA, a regional proprietary institution of higher education offering undergraduate and graduate degree programs, is slated to release its results before market opens.

The company posted a positive surprise of 19.1% in the last reported quarter. Though the company has beaten estimates in three of the past four quarters, it has an average negative surprise of 0.14%.

We cannot conclusively predict a beat for the company as it has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Strayer Education, Inc. Price and EPS Surprise

Meanwhile, the Zacks Consensus Estimate for fourth-quarter 2016 earnings is pegged at $1.16, reflecting a decline of 4.1%.

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