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School Stocks Earnings Releases on Aug 4: LOPE, UTI

According to our earnings preview report , 48.6% of consumer discretionary companies have already reported second-quarter 2016 results. Of these, 88.2% have surpassed earnings estimates and 47.1% beat revenue expectations. Total earnings of these consumer discretionary companies increased 4.1% on 1.9% increase in revenues.

As the U.S economy is recovering at a steady pace, marked by improving employment levels and positive consumer confidence, education companies are implementing initiatives to attract students. These initiatives are focused on improving the affordability of the programs, upgrading the programs to improve their outcome, and ensuring that the students complete their graduation. Companies are reaching out to students with new campuses and online programs to improve accessibility. The focus remains on training students to be a part of a workforce that enjoys strong demand in the employment market. However, there is still reluctance among students to enroll in academic programs and take loans to fund them.

In the current scenario, while some education companies are doing well, things are not as positive for the others.

Among the few that have reported, Capella Education Company CPLA posted impressive second-quarter 2016 results on Jul 26, beating estimates on both counts. The company recorded a year-over-year increase in earnings per share and revenues, driven by positive enrollment levels recorded at Capella University.

However, Strayer Education, Inc. STRA reported disappointing second-quarter 2016 results on Jul 27 despite positive enrollment levels. The company missed the Zacks Consensus Estimate for both revenues and earnings per share. In addition, earnings, revenues and margin declined year over year, owing to lower revenue per student and slower payment from corporate alliance partners.

Two more companies from the education sector are set to report their second quarter results on Aug 4. Let's see how things are shaping up for their respective announcements.

Grand Canyon Education, Inc.LOPE

Grand Canyon Education posted a positive surprise of 4.55% in the last reported quarter. Moreover, the company has surpassed estimates in each of the past four quarters, resulting in an average positive surprise of 5.47%.

GRAND CANYON ED Price and EPS Surprise

GRAND CANYON ED Price and EPS Surprise | GRAND CANYON ED Quote

The company has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for second quarter 2016 is pegged at 54 cents.

Universal Technical Institute, Inc.UTI

A leading provider of post-secondary education in the United States, Universal Technical Institute posted a negative surprise of 658.82% last quarter. The company has missed estimates in each of the past four quarters, resulting in an average negative surprise of 423.04%.

UNIVL TECH INST Price and EPS Surprise

UNIVL TECH INST Price and EPS Surprise | UNIVL TECH INST Quote

The company has an Earnings ESP of 0.00% and a Zacks Rank #3. The Zacks Consensus Estimate for third quarter 2016 is pegged at a loss of 25 cents.

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STRAYER EDUC (STRA): Free Stock Analysis Report

CAPELLA EDUCATN (CPLA): Free Stock Analysis Report

UNIVL TECH INST (UTI): Free Stock Analysis Report

GRAND CANYON ED (LOPE): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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