Earnings To Watch: Lincoln Educational (LINC) Reports Q1 Results Tomorrow

Jabin Bastian /
2024/05/05 3:00 am EDT

Education company Lincoln Educational (NASDAQ:LINC) will be reporting earnings tomorrow before market hours. Here's what you need to know.

Lincoln Educational beat analysts' revenue expectations by 6.6% last quarter, reporting revenues of $102.5 million, up 11.7% year on year. It was a solid quarter for the company, with full-year revenue guidance exceeding analysts' expectations and a decent beat of analysts' enrolled students estimates.

Is Lincoln Educational a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Lincoln Educational's revenue to grow 11.1% year on year to $97 million, improving from the 5.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 per share.

Lincoln Educational Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lincoln Educational has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 3.2% on average.

Looking at Lincoln Educational's peers in the education services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Bright Horizons delivered year-on-year revenue growth of 12.5%, beating analysts' expectations by 1.2%, and Perdoceo Education reported a revenue decline of 14%, topping estimates by 3%. Bright Horizons traded up 6.8% following the results while Perdoceo Education was also up 31.7%.

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

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the education services stocks have fared somewhat better, they have not been spared, with share prices down 3.4% on average over the last month. Lincoln Educational is up 9.5% during the same time and is heading into earnings with an average analyst price target of $13.6 (compared to the current share price of $11.09).

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.