Phoenix Education Partners (NYSE:PXED) Issues Earnings Results

Phoenix Education Partners (NYSE:PXED) released its quarterly earnings results on Tuesday. The company reported $0.58 earnings per share for the quarter, beating analysts’ consensus estimates of $0.34 by $0.24, Briefing.com reports. The firm’s revenue for the quarter was down .4% on a year-over-year basis.

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%

Shares of PXED stock traded down $0.41 on Tuesday, reaching $31.10. 112,640 shares of the stock were exchanged, compared to its average volume of 88,365. The stock has a market cap of $1.11 billion and a PE ratio of 12.85. The company has a current ratio of 1.88, a quick ratio of 1.88 and a debt-to-equity ratio of 0.22. The stock’s 50 day moving average price is $29.41. Phoenix Education Partners has a 1-year low of $23.52 and a 1-year high of $47.08.

Phoenix Education Partners Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, February 18th. Stockholders of record on Wednesday, January 28th were issued a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date was Wednesday, January 28th. Phoenix Education Partners’s dividend payout ratio is presently 34.71%.

Institutional Trading of Phoenix Education Partners

Several large investors have recently added to or reduced their stakes in PXED. Wellington Management Group LLP purchased a new position in Phoenix Education Partners in the 4th quarter valued at about $10,559,000. Alyeska Investment Group L.P. purchased a new position in Phoenix Education Partners in the 4th quarter valued at about $7,989,000. FIL Ltd purchased a new position in Phoenix Education Partners in the 4th quarter valued at about $7,575,000. Loomis Sayles & Co. L P purchased a new position in Phoenix Education Partners in the 4th quarter valued at about $7,191,000. Finally, Marshall Wace LLP purchased a new position in Phoenix Education Partners in the 4th quarter valued at about $6,130,000.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the company. Zacks Research lowered Phoenix Education Partners from a “strong-buy” rating to a “hold” rating in a research note on Monday, February 2nd. B. Riley Financial cut their price target on Phoenix Education Partners from $60.00 to $54.00 and set a “buy” rating for the company in a report on Friday, January 9th. Wall Street Zen downgraded Phoenix Education Partners from a “buy” rating to a “hold” rating in a report on Sunday, January 11th. Weiss Ratings assumed coverage on Phoenix Education Partners in a report on Wednesday, January 14th. They issued a “sell (d+)” rating for the company. Finally, Barrington Research reiterated an “outperform” rating and issued a $45.00 price target on shares of Phoenix Education Partners in a report on Wednesday, March 25th. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $44.00.

Phoenix Education Partners Company Profile

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.