A Gold Star for Strayer
Adult learning scores high marks on the Street, judging by Strayer Education (STRA ), which soared from 48 in March to 66 in June. It's now at 57. Strayer caters to working adults through its Strayer University, offering degrees in business, accounting, and info tech to 14,000 adults on 20 campuses from North Carolina to Washington, D.C. An accredited college, Strayer also offers courses online.
In the second quarter, Strayer again posted solid results, says Gerald Odening of J.P. Morgan Securities, who rates the stock a long-term buy. Revenues grew 25.5% from a year ago, to $29.8 million, driven by a 19% enrollment rise and a 5% jump in tuition. And Strayer Online, he says, is emerging as No. 2 provider of Net degree programs. Odening sees 2002 earnings of $1.79 on revenues of $116.8 million, and $2.17 a share in 2003 on $141 million. Odening's family owns shares, and J.P. Morgan has a seat on Strayer's board.
By Gene G. Marcial