Grand Canyon Education Inc. (LOPE) reported a significant rise in its third-quarter net income, which surged by 16% to $41.47 million, up from $35.74 million the previous year. This translated to a net income of $1.42 per share, compared to $1.19 per share in the prior year.
In Wednesday’s trading, LOPE stocks closed at $160.15, marking an impressive rise of $20.40 or 14.60%. The company's adjusted net income per share for the third quarter increased to $1.48 from $1.26 last year, slightly surpassing the $1.47 per share anticipated by analysts surveyed by Thomson Reuters. These forecasts typically do not account for extraordinary items.
The company's service revenue for the third quarter reached $238.3 million, marking a $16.4 million or 7.4% increase compared to the previous year's $221.9 million. This growth was largely driven by a rise in enrollments at Grand Canyon University (GCU), its largest university partner. As of September 30, 2024, GCU enrollments rose by 4% to 123,002, compared to the same date in 2023. Additionally, university partner enrollments at off-campus classroom and laboratory sites increased to 5,888, a rise of 8.1%, which includes 913 GCU students in 2024 and 510 in 2023. There was also an increase in revenue per student year-over-year. Analysts had projected quarterly revenue of $239.7 million.
Looking forward to the fourth quarter, the company anticipates earnings per share between $2.86 and $2.89, with service revenue expected to range from $289.0 million to $290.0 million. Analysts are predicting earnings of $2.91 per share and revenues of $289.3 million for the quarter.
For the fiscal year 2024, projections indicate earnings per share between $7.76 and $7.79, alongside service revenue between $1.029 billion and $1.030 billion. Wall Street expects fiscal year 2024 earnings to be $7.99 per share, with annual revenues reaching $1.03 billion.
