Perdoceo Education Corporation PRDO has completed its acquisition of the University of St. Augustine for Health Sciences, LLC (“USAHS”). This transaction was valued at approximately $138 million in cash, net of cash acquired.
Shares of this postsecondary education provider rose 1.8% during yesterday’s trading hours.
PRDO to Drive Growth With USAHS’ Acquisition
This acquisition is expected to enhance PRDO's financial performance and contribute to its long-term growth trajectory. Founded in 1979, USAHS is a leading provider of graduate health sciences degrees, specializing in physical therapy, occupational therapy, speech-language therapy and nursing. The university also offers continuing education programs.
USAHS operates through multiple campuses in San Marcos, CA, St. Augustine and Miami, FL, and Austin and Dallas, TX, in addition to its online programs. The university serves around 4,100 graduate and post-graduate students across various health sciences disciplines.
In the first nine months of 2024, USAHS reported unaudited revenues of approximately $114 million and an operating income of $10.5 million. Perdoceo expects the transaction to be accretive to its adjusted operating income starting in 2025 with further growth anticipated for 2026.
PRDO has also reaffirmed its outlook for fiscal 2024, maintaining the company’s expectations for strong financial performance. The company is on track to meet its adjusted operating income outlook of $188 million to $191 million as disclosed in its third-quarter earnings release.
PRDO’s Price Performance
Shares of Perdoceo have gained 28.3% in the past three months compared with the Zacks Schools industry’s 8.3% growth. The company has been benefiting from solid student retention and engagement across its academic institutions. Perdoceo remains focused on investing in student support resources and technology to enhance academic outcomes.
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Earnings per share (EPS) estimates for fiscal 2024 have moved up to $2.27 from $2.19 in the past 30 days. The estimated figure indicates 8.1% year-over-year growth. The company’s EPS topped analysts’ expectations in each of the trailing four quarters, with an average surprise of 11.3%.
PRDO’s Zacks Rank & Other Key Picks
Perdoceo currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
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The Zacks Consensus Estimate for CCL’s fiscal 2024 sales indicates growth of 16.7% from year-ago levels.
Norwegian Cruise Line Holdings Ltd. NCLH currently sports a Zacks Rank #2. NCLH has a trailing four-quarter earnings surprise of 4.2%, on average. The stock has surged 62% in the past year.
The Zacks Consensus Estimate for NCLH’s 2024 sales and EPS indicates growth of 10.5% and 134.3%, respectively, from year-ago levels.
Royal Caribbean Cruises Ltd. RCL currently carries a Zacks Rank #2. RCL has a trailing four-quarter earnings surprise of 16.2%, on average. The stock has surged 115.8% in the past year.
The Zacks Consensus Estimate for RCL’s 2024 sales and EPS indicates growth of 18.6% and 71.9%, respectively, from year-ago levels.
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