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Grand Canyon Education Enrollment Surges
1 Aug
Summary
- Revenue and earnings increased in the second quarter.
- Enrollment grew across online, campus, and healthcare platforms.
- Adjusted EPS exceeded consensus estimates by $0.14.
Grand Canyon Education (GCE) announced robust second-quarter financial results, demonstrating resilience despite headwinds in the higher education sector. Service revenue increased by 6.7% to $264 million, largely due to a 7.6% expansion in university partner enrollments.
Operating income saw a healthy rise to $58.2 million, with the operating margin improving to 22.0%. GCE reported GAAP diluted earnings per share of $1.75 and adjusted diluted EPS of $1.81, notably exceeding consensus estimates by $0.14.
The company's growth strategy focuses on three key platforms: Grand Canyon University's online operations, its traditional ground campus, and its network of hybrid healthcare programs. Total online enrollment grew by just under 8%, aligning with long-term targets of 6% to 7% annual growth.
Over 32% of GCU students are sourced through external partnerships with organizations like hospitals and military bases. Significantly, more than 70% of GCE's online students are pursuing degrees in licensure-related fields, such as education and healthcare.
