Grand Canyon Education (NASDAQ: LOPE) reported Q2 EPS of $1.01, $0.12 better than the analyst estimate of $0.89. Revenue for the quarter came in at $210.58 million versus the consensus estimate of $208.22 million.

2023 Outlook

Q3 2023:

Service revenue of between $218.5 million and $220.5 million;
Operating margin of between 16.0% and 16.7%;
Effective tax rate of 18.6%;
Diluted EPS of between $0.99 and $1.04; and
30.0 million diluted shares.

The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $1.7 million, which equates to a $0.06 impact on diluted EPS. Thus, as adjusted, Non-GAAP diluted income per share of between $1.05 and $1.10.

Q4 2023:

Service revenue of between $269.5 million and $274.5 million;
Operating margin of between 34.1% and 35.3%;
Effective tax rate of 21.3%;
Diluted EPS of between $2.48 and $2.61; and
29.7 million diluted shares.

The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $1.7 million, which equates to a $0.06 impact on diluted EPS. Thus, as adjusted, Non-GAAP diluted income per share of between $2.54 and $2.67.

Full Year 2023:

Service revenue of between $948.7 million and $955.7 million;
Operating margin of between 25.0% and 25.5%;
Effective tax rate of 21.6%;
Diluted EPS between $6.37 and $6.55; and
30.1 million diluted shares.

The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $6.6 million and losses on fixed asset disposals net of taxes of $0.1 million, which equates to a $0.22 impact on diluted EPS. Thus, as adjusted, Non-GAAP diluted income per share of between $6.59 and $6.77.

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