Grand Canyon Education (NASDAQ:LOPE) surprised to the upside in its most recent quarter, but may be a victim of its own success, as the incoming new students may not be enough to grow the company, as a large number of those that stayed the course are graduating, pointing to potential downward pressure on the company.
Coupled with the higher average GPA of new students, and it has the potential to offset other gains the company may make. The reason the higher GPA is an issue is, the higher the GPA, the more new students can receive financial assistance, which will of course push down the revenue per student generated by the company.
This is one of the difficult...
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