Strayer University plans to add nine campuses across the country in 2008 and increase tuition by 5 percent in January.
The adult education institution based in Arlington, with more than 55 campuses nationwide and 10 in the Washington area, expanded with eight campuses each in 2006 and 2007.
Two of the nine campuses will be in Charlotte and Raleigh, N.C., and are expected to open in winter 2008, Strayer said. These cities already have three campuses each.
“Our preference is to push out our footprint into new markets and new states as well as fill in the gaps in existing markets,” Chief Financial Officer Mark Brown said.
Most of the 10 campuses in the Washington area are classified by the university as “mature,” meaning they have been established for at least three years, according to Brown.
When a campus is seven to nine years old, enrollment begins to hold steady, Brown said. Less money needs to be spent per student on marketing efforts, but new campuses have to open to increase overall enrollment.
Enrollment increased 15 percent, from just under 31,400 in fall 2006 to just under 36,100 in fall 2007.
Popular programs include business, accounting and information technology.
Strayer University’s strategy is to “become a nationwide university,” a spokeswoman said.
Analyst Brian Dobell of William Blair & Co. LLC expected enrollment increases of about 17.3 percent, or just under 36,800, and eight to 10 new campuses.
Strayer’s business model is the “best among the education companies … and one of the best management teams,” Dobell wrote in an report.
Profits jumped 46 percent from $6.3 million, or 44 cents per share, to $9.3 million, 64 cents, in the third quarter, slightly above analysts’ expectations.
Revenue climbed 23 percent to $69.8 million from $56.7 million a year earlier.
