Perdoceo Education (PRDO) AI Stock Analysis

Company Guidance

For full year 2026, the company expects its effective tax rate to be between 23% and 24%, cash paid for income taxes to be in the range of 2.32 thousand% of pretax income, and capital expenditures to be approximately 1% of revenues; full year 2020 adjusted operating income is expected to range between $258 million and $263 million, adjusted earnings per diluted share are expected to be between $3.10 and $3.16, a 19.9% increase at the midpoint, and full year revenue is expected to increase versus 2025. At Saint Augustine, the company expects revenue and total student enrollments growth each quarter, resulting in double digit adjusted operating income growth for the full year; at AIU System, it expects operating income to grow for the full year. For the third quarter of 2020, adjusted operating income is expected to be in the range of $64 million to $65 million versus $61 million in the prior year quarter, with adjusted earnings per diluted share to range between $0.73 and $0.74 per diluted share versus $0.65. Future quarterly dividend payments are expected to be paid out of free cash flows for the relevant year, subject to board approval and the company's available retained earnings, financial condition, and other relevant factors, and quarterly dividend payments are expected to remain an integral and growing component of the balance allocation capital allocation strategy.