Phoenix Education Partners (NYSE:PXED) Posts Quarterly Earnings Results, Beats Estimates By $0.24 EPS
by Kim Johansen · The Markets DailyPhoenix Education Partners (NYSE:PXED – Get Free Report) released its earnings results on Tuesday. The company reported $0.58 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.24, Briefing.com reports. The business’s revenue for the quarter was down .4% compared to the same quarter last year.
Here are the key takeaways from Phoenix Education Partners’ conference call:
- Enrollment and retention improved, with average total degreed enrollment up 1.8% in Q2 and retention from the most recent annual cohort rising to 76.6% (≈500 bps YoY), which management says is driving durable enrollment growth.
- Mixed financials — Q2 net revenue was slightly down (-0.4% to $222.5M) while adjusted EBITDA rose 7.8% to $34.8M; net income fell due mainly to higher share-based compensation from the IPO, and full-year guidance was reiterated with revenue expected toward the lower end and adjusted EBITDA toward the upper end of the ranges.
- Employer-affiliated (B2B) students continue to expand, representing 35% of enrollment (vs. 31% a year ago), a channel the company says has higher retention and reinforces revenue durability.
- Strong balance sheet and shareholder returns — cash and marketable securities of about $252.1M, no debt, a new $50M share repurchase authorization, and a maintained quarterly dividend of $0.21 per share.
- Continued investment in technology and AI — the company is deploying AI across onboarding, 24/7 support, advisor productivity, credit evaluation and marketing personalization, which management links to improved student outcomes and margin expansion.
Phoenix Education Partners Stock Down 1.3%
PXED stock traded down $0.41 during midday trading on Tuesday, reaching $31.10. The company had a trading volume of 112,640 shares, compared to its average volume of 87,327. The company’s 50 day simple moving average is $29.41. Phoenix Education Partners has a 1-year low of $23.52 and a 1-year high of $47.08. The company has a quick ratio of 1.88, a current ratio of 1.88 and a debt-to-equity ratio of 0.22.
Phoenix Education Partners Announces Dividend
The business also recently declared a quarterly dividend, which was paid on Wednesday, February 18th. Investors of record on Wednesday, January 28th were paid a $0.21 dividend. This represents a $0.84 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend was Wednesday, January 28th. Phoenix Education Partners’s payout ratio is 34.71%.
Institutional Inflows and Outflows
A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Police & Firemen s Retirement System of New Jersey bought a new position in Phoenix Education Partners in the fourth quarter valued at about $40,000. Deutsche Bank AG bought a new stake in shares of Phoenix Education Partners during the fourth quarter worth about $89,000. MetLife Investment Management LLC bought a new stake in shares of Phoenix Education Partners during the fourth quarter worth about $92,000. Sandia Investment Management LP bought a new stake in shares of Phoenix Education Partners during the fourth quarter worth about $161,000. Finally, Wells Fargo & Company MN bought a new stake in shares of Phoenix Education Partners during the fourth quarter worth about $165,000.
Analysts Set New Price Targets
PXED has been the subject of several research reports. Weiss Ratings initiated coverage on Phoenix Education Partners in a report on Wednesday, January 14th. They set a “sell (d+)” rating for the company. Barrington Research reaffirmed an “outperform” rating and set a $45.00 price target on shares of Phoenix Education Partners in a report on Wednesday, March 25th. Wall Street Zen downgraded Phoenix Education Partners from a “buy” rating to a “hold” rating in a report on Sunday, January 11th. Zacks Research downgraded Phoenix Education Partners from a “strong-buy” rating to a “hold” rating in a report on Monday, February 2nd. Finally, Morgan Stanley raised their price target on Phoenix Education Partners from $45.00 to $46.00 and gave the company an “overweight” rating in a report on Wednesday, January 14th. Three equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Phoenix Education Partners currently has an average rating of “Hold” and a consensus target price of $44.00.
View Our Latest Research Report on PXED
About Phoenix Education Partners
Our Mission To provide access to higher education opportunities that enable students to develop the knowledge and skills necessary to achieve their professional goals, improve the performance of their organizations and provide leadership and service to their communities. We are a mission-driven organization operating at the forefront of the rapidly evolving post-secondary education market. As one of the largest online education providers and a pioneer in our field, we benefit from the dynamic interplay between technological innovation, education, employment and economic trends.