Strayer Education (NASDAQ: STRA) reported Q1 EPS of $1.23, $0.08 better than the analyst estimate of $1.15. Revenue for the quarter came in at $116.5 million versus the consensus estimate of $116.77 million.

Three Months Ended March 31:

• For the first quarter, student enrollment at the Company’s main operating unit, Strayer University, increased 6% to 46,184 compared to 43,387 for the same period in 2017. New student enrollment for the period increased 6% and continuing student enrollment for the period increased 7%.
• Revenue was $116.5 million compared to $114.9 million for the same period in 2017, as higher winter term enrollment was offset by lower revenue per student due to the continuing effect of scholarships issued in the fall 2017 term.
• Income from operations decreased to $11.3 million from $18.4 million for the same period in 2017, primarily due to costs associated with the Company’s pending merger with Capella Education Company. Adjusted income from operations, which is a non-GAAPfinancial measure, was $16.7 million compared to $18.4 million in the same period in 2017. For more details on non-GAAP financial measures, refer to the information on pages 8 through 10.
• Net income, which includes the effects of the new lower federal income tax rate, was $9.5 million, and adjusted net income was $13.9 million, compared to net income of $10.6 million in the same period in 2017.
• Earnings before interest, taxes, depreciation, and amortization (EBITDA) was $16.4 million compared to $22.8 million in 2017. Adjusted EBITDA was $24.8 million compared to $25.7 million in the same period in 2017.
• Diluted earnings per share was $0.84 compared to $0.95 for the same period in 2017. Adjusted diluted earnings per share grew 29% to $1.23 from $0.95 for the same period in 2017. Diluted weighted average shares outstanding increased 2% to 11,311,000 from 11,121,000 for the same period in 2017.

Q2 2018 Outlook

Total enrollments at Strayer University for the second quarter of 2018 are anticipated to grow 8% to approximately 46,800 students from 43,411 students for the same period in 2017. New student enrollments are expected to increase approximately 7% and continuing student enrollments are expected to increase approximately 8%. Revenue per student for the second quarter is expected to decrease by approximately 5% due primarily to the continuation of students participating in scholarship programs launched in 2017. Additionally, the Company expects the tax rate in the second quarter to be in the range of 27% to 28%, excluding the impact of any non-deductible merger costs, and other discrete tax adjustments.

For earnings history and earnings-related data on Strayer Education (STRA) click here.