Looking back on education services stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Adtalem (NYSE:ATGE) and its peers.
A whole industry has emerged to address the problem of rising education costs, offering consumers alternatives to traditional education paths such as four-year colleges. These alternative paths, which may include online courses or flexible schedules, make education more accessible to those with work or child-rearing obligations. However, some have run into issues around the value of the degrees and certifications they provide and whether customers are getting a good deal. Those who don’t prove their value could struggle to retain students, or even worse, invite the heavy hand of regulation.
The 8 education services stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 3.7% while next quarter’s revenue guidance was in line.
While some education services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.5% since the latest earnings results.
Best Q4: Adtalem (NYSE:ATGE)
Formerly known as DeVry Education Group, Adtalem Global Education (NYSE:ATGE) is a global provider of workforce solutions and educational services.
Adtalem reported revenues of $447.7 million, up 13.9% year on year. This print exceeded analysts’ expectations by 4.7%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
"Growth with Purpose, our operational excellence strategy, has delivered exceptional results—marked by six straight quarters of enrollment growth—while advancing our mission to develop skilled healthcare professionals," said Steve Beard, chairman and chief executive officer, Adtalem Global Education.
The stock is down 2.5% since reporting and currently trades at $99.85.
Is now the time to buy Adtalem? Access our full analysis of the earnings results here, it’s free.
Strategic Education (NASDAQ:STRA)
Formed through the merger of Strayer Education and Capella Education in 2018, Strategic Education (NASDAQ:STRA) is a career-focused higher education provider.
Strategic Education reported revenues of $311.5 million, up 2.9% year on year, in line with analysts’ expectations. The business performed better than its peers, but it was unfortunately a mixed quarter with a decent beat of analysts’ EBITDA estimates but a miss of analysts’ international students estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 17.1% since reporting. It currently trades at $81.21.
Is now the time to buy Strategic Education? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Laureate Education (NASDAQ:LAUR)
Founded in 1998 by Douglas L. Becker and based in Miami, Laureate Education (NASDAQ:LAUR) is a global network of higher education institutions.
Laureate Education reported revenues of $423.4 million, up 3.4% year on year, exceeding analysts’ expectations by 2.2%. Still, it was a mixed quarter as it posted full-year revenue guidance missing analysts’ expectations.
Laureate Education delivered the weakest full-year guidance update in the group. The stock is flat since the results and currently trades at $20.20.
Read our full analysis of Laureate Education’s results here.
Bright Horizons (NYSE:BFAM)
Founded in 1986, Bright Horizons (NYSE:BFAM) is a global provider of child care, early education, and workforce support solutions.
Bright Horizons reported revenues of $674.1 million, up 9.5% year on year. This print met analysts’ expectations. Zooming out, it was a mixed quarter as it also recorded a decent beat of analysts’ adjusted operating income estimates but full-year revenue guidance slightly missing analysts’ expectations.
The stock is up 7.3% since reporting and currently trades at $127.54.
Read our full, actionable report on Bright Horizons here, it’s free.
Lincoln Educational (NASDAQ:LINC)
Established in 1946, Lincoln Educational (NASDAQ:LINC) is a provider of specialized technical training in the United States, offering career-oriented programs to provide practical skills required in the workforce.
Lincoln Educational reported revenues of $119.4 million, up 16.4% year on year. This result surpassed analysts’ expectations by 6.9%. Overall, it was a very strong quarter as it also put up full-year EBITDA guidance exceeding analysts’ expectations.
Lincoln Educational pulled off the highest full-year guidance raise among its peers. The stock is up 17.8% since reporting and currently trades at $18.94.
Read our full, actionable report on Lincoln Educational here, it’s free.
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