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 Bright Horizons (NYSE:BFAM) 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 those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, but education services stocks have performed well, with the share prices up 20.4% on average since the previous earnings results.
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%. Overall, 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.
“We had a solid start to 2024, with our team delivering better-than-expected revenue and earnings,” said Stephen Kramer, Chief Executive Officer.
Bright Horizons delivered the weakest full-year guidance update of the whole group. The stock is up 13.1% since reporting and currently trades at $117.90.
Is now the time to buy Bright Horizons? 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 17.3% since reporting. It currently trades at $118.06.
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 and a miss of analysts' enrolled students estimates..Interestingly, the stock is up 6% since the results and currently trades at $15.47.
Read our full analysis of Laureate Education's results here.
Grand Canyon Education (NASDAQ:LOPE)
Founded in 1949, Grand Canyon Education (NASDAQ:LOPE) is an educational services provider known for its operation at Grand Canyon University.
Grand Canyon Education reported revenues of $274.7 million, up 9.8% year on year, in line with analysts' expectations. Zooming out, it was a decent quarter for the company with optimistic earnings guidance for the next quarter.
Grand Canyon Education had the weakest performance against analyst estimates among its peers. The stock is up 9.1% since reporting and currently trades at $152.75.
Read our full, actionable report on Grand Canyon Education here, it's free.
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, surpassing analysts' expectations by 5.4%. Overall, it was a strong quarter for the company with an impressive beat of analysts' earnings estimates and full-year revenue guidance exceeding analysts' expectations.
Adtalem achieved the highest full-year guidance raise among its peers. The stock is up 47% since reporting and currently trades at $77.01.
Read our full, actionable report on Adtalem here, it's free.
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