Child care and education company Bright Horizons (NYSE:BFAM) will be announcing earnings results tomorrow after market hours. Here’s what you need to know.
Bright Horizons met analysts’ revenue expectations last quarter, reporting revenues of $670.1 million, up 11.1% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ operating margin estimates and a solid beat of analysts’ earnings estimates.
Is Bright Horizons a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Bright Horizons’s revenue to grow 10.4% year on year to $713.2 million, slowing from the 19.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.06 per share.
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. Bright Horizons has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.7% on average.
Looking at Bright Horizons’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Adtalem delivered year-on-year revenue growth of 13.2%, beating analysts’ expectations by 5%, and Laureate Education reported revenues up 2%, topping estimates by 1.9%. Adtalem traded up 9.5% following the results while Laureate Education was also up 8.5%.
Read our full analysis of Adtalem’s results here and Laureate Education’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices up 1.9% on average over the last month. Bright Horizons is down 2% during the same time and is heading into earnings with an average analyst price target of $137.70 (compared to the current share price of $133.54).
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