Strategic Education (STRA) Boosts Campus Count In Texas
Zacks Investment Research | Nov 16, 2018 04:56AM ET
Strategic Education Inc.’s (NASDAQ:STRA) wholly-owned subsidiary, Strayer University, has opened a new campus for working adults in El Paso, TX. The campus provides affordable and attainable degree options for associates and bachelors to masters’ level students.
The El Paso campus is designed to meet the rapidly evolving demand trends of job seekers as well as local employers. Also, the campus features leaner classroom model and has a diverse collection of courses to offer.
Strayer University has more than 70 campuses worldwide and the latest one mark the seventh campus within Texas.
Initiatives to Drive Growth
Strategic Education laid out various initiatives to improve affordability, as well as academic and career outcomes for students, which will help to boost enrollments, thereby driving revenues. The company emphasizes on convenient, accessible and flexible educational programs that are aimed at teaching new skills to employees.
In a bid to give better academic and career solutions to students, the company merged Strayer Education and Capella Education on Aug 1, 2018. Both the university’s educational programs are specifically designed to meet the educational needs of working adults in targeted professions. Also, they provide weekend, evening and online educational courses that are well suited for the work-day schedules of adults. These career-oriented programs allow students to achieve their professional goals.
The company has already been benefiting from the ongoing initiatives, which is evident from recently released third-quarter results. Notably, Strayer Education’s revenues increased 6.7% to $114.5 million on a year-over-year basis. Total enrollment grew 9%, new student enrollments rose 11.9% and continuing student enrollments increased 8.3% from a year ago.
Strategic Education’s adjusted operating margin in the quarter was up 620 basis points (bps) from the year-ago quarter. Adjusted EBITDA also grew more than double from the prior-year figure of $14.2 million. Specifically, operating margin of Strayer University increased 290 bps in the same period.
Share Price Performance
Shares of Strategic Education, currently a Zacks Rank #3 (Hold) company, have broadly outperformed the Zacks Investment Research
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