Phoenix Education Partners forecasts lower FY2027 revenue after Q4 miss

Overview

• U.S. online higher education provider's Q4 revenue rose yr/yr but missed analyst expectations

• Adjusted EPS for Q4 increased to $1.07 from $1.03 a year ago

• Company raised quarterly dividend by about 10%

Outlook

• Company expects fiscal 2027 net revenue of $970 mln-$1 bln

• Company sees fiscal 2027 adjusted EBITDA of $225 mln to $240 mln

• Fiscal 2027 outlook includes Fuel50 results after September 2026 acquisition

Result Drivers

• ENROLLMENT GROWTH - Average total degreed enrollment rose to 81,500 from 79,300 a year earlier as Q4 revenue increased

• CREDIT LOSS PROVISION - Lower provision for credit losses helped boost Q4 net income

• RESTRUCTURING COSTS - Lower restructuring and strategic alternatives expense supported Q4 net income

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the schools, colleges & universities peer group is "buy"

• Wall Street's median 12-month price target for Phoenix Education Partners, Inc. is $38.00, about 58.9% above its November 2 closing price of $23.91

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)