Strategic Education Inc

F:SQE

Quarterly results: Strategic Education said second-quarter revenue rose 3% to $330 million, with operating income up 9% to $53 million and adjusted EPS up 16% to $1.76.

Margin strength: Excluding a $13 million Australia labor reserve, management said operating income would have been up 35% and operating margin would have been 20%.

U.S. higher ed: Employer-affiliated enrollment hit a new high and health care enrollment stayed strong, while management said unaffiliated demand is not a current marketing priority.

Australia setback: The company booked a reserve tied to an ongoing labor dispute and said domestic student growth remains healthy, but international growth is being held back by slow visa approvals.

Outlook: Management said it expects full-year revenue growth to be below its notional model, but remains confident in 200 basis points of EBIT margin expansion over this year and next.

Capital return: The company repurchased 421,000 shares for $33 million and still had about $141 million left on its buyback authorization at quarter-end.