Strayer Education (STRA)-bear of the day

Although Strayer Education (STRA) posted better-Q4 2010 results than expected, enrollments continue to fall. We observe that the growth in enrollments slowed sequentially.

After the increase of 11% in the third quarter of 2010, the rate of growth of campus-based students has fallen to 4% in the fourth quarter. Moreover, the growth of online students rate drops to 10%, following an increase of 18% in the prior quarter. The company also informed that the enrollment of new students declined 20% during the quarter.

The current hazard looming above the field of education is the regulation proposed by the Department of education creates an uncertainty over trends in enrollment of students. Currently, we keep our Underperform the stock recommendation.
STRAYER EDUC (STRA): Report of Free Stock Analysis
Zacks Investment Research

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