Grand Canyon Education (NASDAQ: LOPE) reported Q1 EPS of $1.16, $0.15 better than the analyst estimate of $1.01. Revenue for the quarter came in at $248.2 million versus the consensus estimate of $244.72 million.

• Net revenue increased 9.4% to $248.2 million for the first quarter of 2017, compared to $227.0 million for the first quarter of 2016.
• End-of-period enrollment increased 11.0% to 83,352 at March 31, 2017, from 75,096 at March 31, 2016, as ground enrollment increased 12.0% to 15,857 at March 31, 2017, from 14,158 at March 31, 2016 and online enrollment increased 10.8% to 67,495 at March 31, 2017, from 60,938 at March 31, 2016.
• Operating income for the first quarter of 2017 was $76.6 million, an increase of 11.6% as compared to $68.7 million for the same period in 2016. The operating margin for the first quarter of 2017 was 30.9%, compared to 30.3% for the same period in 2016. Operating income and the operating margin for the first quarter of 2016, excluding legal and other professional fees incurred related to the proposed conversion back to a not for profit status, was $69.9 million and 30.8% for the first quarter of 2016.
• The University recognized $1.8 million during the first three months of 2016 on its proportional share of equity interest income related to our ownership interest in LoudCloud. No similar amounts were recognized in the first three months of 2017.
• The tax rate in the first quarter of 2017 was 26.5% compared to 38.0% in the first quarter of 2016. The favorable variance in the effective tax rate year over year is due to our adoption of the share-based compensation standard in the first quarter of 2017, which resulted in the recognition of excess tax benefits from share-based compensation awards that vested or settled in 2017 in the consolidated income statement. The inclusion of excess tax benefits and deficiencies as a component of our income tax expense will increase volatility within our provision for income taxes as the amount of excess tax benefits or deficiencies from share-based compensation awards are dependent on our stock price at the date the restricted awards vest, our stock price on the date an option is exercised, and the quantity of options exercised. Our restricted stock vests in March each year so the favorable benefit will primarily impact the first quarter each year.
• Net income increased 28.0% to $55.9 million for the first quarter of 2017, compared to $43.7 million for the same period in 2016.
• Diluted net income per share was $1.16 for the first quarter of 2017, compared to $0.93 for the same period in 2016. Excluding not for profit transaction expenses and the gain of $1.8 million on the investment discussed above, net of taxes, diluted net income per share was $0.92 for the first quarter of 2016.
• Adjusted EBITDA increased 11.6% to $92.9 million for the first quarter of 2017, compared to $83.3 million for the same period in 2016.

For earnings history and earnings-related data on Grand Canyon Education (LOPE) click here.