Why the IDP Education (ASX:IEL) share price is rocketing 17% higher

The IDP Education Ltd (ASX: IEL) share price has been an exceptionally strong performer on Wednesday.

In morning trade the student placement and language testing company’s shares are up over 17% to a record high of $29.22.

Today’s impressive gain means the IDP Education share price is now up a remarkable 42% since the start of 2021.

Why is the IDP Education share price rocketing higher today?

Investors have been fighting to get hold of IDP Education shares today despite it posting a sizeable decline in first half revenue and earnings.

For the six months ended 31 December, the company reported total revenue of $269 million and earnings before interest and tax (EBIT) of $47.3 million. This represents a 29% and 46% decline on the prior corresponding period.

This was driven by declines across all segments due to COVID impacts. The key English Language Testing segment reported a 36% decline in revenue to $158.3 million, whereas the Student Placement segment posted a 36% decline to $78.3 million.

Elsewhere, the English Language Teach segment experienced a 39% decline in revenue and the Digital Marketing segment recorded a 7% decline.

This ultimately led to IDP Education posting a 49% reduction in half year net profit after tax to $29…

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From Motley Fool - 24/02/2021