Q1 Earnings Highlights: Adtalem (NYSE:ATGE) Vs The Rest Of The Education Services Stocks
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Adtalem (NYSE:ATGE) and the best and worst performers in the education services industry.
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 Q1; on average, revenues beat analyst consensus estimates by 3.6%. while next quarter's revenue guidance was in line with consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but education services stocks have performed well, with the share prices up 19.9% on average since the previous earnings results.
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 $412.7 million, up 11.8% year on year, exceeding analysts' expectations by 5.4%. Overall, it was a very strong quarter for the company with an impressive beat of analysts' earnings estimates and full-year revenue guidance exceeding analysts' expectations.
“Our Growth with Purpose strategy, with its emphasis on operational excellence, continues to accelerate top- and bottom-line performance, permitting us to expand access to high-quality, in-demand programs,” said Steve Beard, president and chief executive officer, Adtalem Global Education.
Adtalem achieved the highest full-year guidance raise of the whole group. The stock is up 52.2% since reporting and currently trades at $79.76.
Is now the time to buy Adtalem? Access our full analysis of the earnings results here, it's free.
Best Q1: 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 $290.3 million, up 13.1% year on year, outperforming analysts' expectations by 5.8%. It was a stunning quarter for the company with an impressive beat of analysts' earnings estimates.
The market seems happy with the results as the stock is up 18.3% since reporting. It currently trades at $119.06.
Is now the time to buy Strategic Education? Access our full analysis of the earnings results here, it's free.
Slowest Q1: 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 $275.4 million, up 9.6% year on year, exceeding analysts' expectations by 2.3%. It was a slower quarter for the company with a miss of analysts' earnings estimates.
Interestingly, the stock is up 6.3% since the results and currently trades at $15.51.
Read our full analysis of Laureate Education's results here.
Perdoceo Education (NASDAQ:PRDO)
Formerly known as Career Education Corporation, Perdoceo Education (NASDAQ:PRDO) is an educational services company that specializes in postsecondary education.
Perdoceo Education reported revenues of $168.3 million, down 14% year on year, surpassing analysts' expectations by 3%. Zooming out, it was a very strong quarter for the company with a decent beat of analysts' earnings estimates.
Perdoceo Education had the slowest revenue growth among its peers. The stock is up 30.9% since reporting and currently trades at $24.
Read our full, actionable report on Perdoceo Education 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 $103.4 million, up 18.4% year on year, surpassing analysts' expectations by 6.6%. Overall, it was a decent quarter for the company with full-year revenue guidance exceeding analysts' expectations but a miss of analysts' earnings estimates.
Lincoln Educational scored the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 18.7% since reporting and currently trades at $13.15.
Read our full, actionable report on Lincoln Educational here, it's free.
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