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Q1 Earnings Highs And Lows: Lincoln Educational (NASDAQ:LINC) Vs The Rest Of The Education Services Stocks


Max Juang /
2024/06/12 3:33 am EDT

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how education services stocks fared in Q1, starting with Lincoln Educational (NASDAQ:LINC).

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, and education services stocks have held roughly steady amidst all this, with share prices up 3.2% on average since the previous earnings results.

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, topping analysts' expectations by 6.6%. It was a strong quarter for the company, with an impressive beat of analysts' operating margin estimates and full-year revenue guidance exceeding analysts' expectations.

“We had an exceptionally strong start to 2024 and the momentum generated during the first quarter has continued,” commented Scott Shaw, President & CEO.

Lincoln Educational Total Revenue

Lincoln Educational scored the biggest analyst estimates beat and fastest revenue growth of the whole group. The stock is down 6.9% since the results and currently trades at $10.31.

Is now the time to buy Lincoln Educational? 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.

Strategic Education Total Revenue

The stock is up 9.6% since the results and currently trades at $110.27.

Is now the time to buy Strategic Education? Access our full analysis of the earnings results here, it's free.

Slowest Q1: 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 $622.7 million, up 12.5% year on year, exceeding analysts' expectations by 1.2%. It was an ok quarter for the company, with a decent beat of analysts' organic revenue estimates but full-year revenue guidance missing analysts' expectations.

Bright Horizons had the weakest full-year guidance update in the group. The stock is up 1.2% since the results and currently trades at $105.56.

Read our full analysis of Bright Horizons's results here.

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, surpassing analysts' expectations by 2.3%. It was an ok quarter for the company, with an impressive beat of analysts' operating margin estimates but a miss of analysts' earnings estimates.

The stock is up 0.1% since the results and currently trades at $14.61.

Read our full, actionable report on Laureate Education here, it's free.

Universal Technical Institute (NYSE:UTI)

Founded in 1965, Universal Technical Institute (NYSE: UTI) is a leading provider of technical training programs, specializing in automotive, diesel, collision repair, motorcycle, and marine technicians.

Universal Technical Institute reported revenues of $184.2 million, up 12.4% year on year, surpassing analysts' expectations by 4%. It was a decent quarter for the company, with full-year revenue guidance beating analysts' expectations but a miss of analysts' earnings estimates.

The stock is down 13.5% since the results and currently trades at $14.42.

Read our full, actionable report on Universal Technical Institute here, it's free.

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