Vocational education company Adtalem Global Education (NYSE: ATGE) will be reporting results tomorrow after the bell. Here’s what to look for.
Adtalem beat analysts’ revenue expectations by 4.7% last quarter, reporting revenues of $447.7 million, up 13.9% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Adtalem a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Adtalem’s revenue to grow 8.2% year on year to $446.4 million, slowing from the 11.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.65 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Adtalem has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.3% on average.
Looking at Adtalem’s peers in the education services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Strategic Education delivered year-on-year revenue growth of 4.6%, beating analysts’ expectations by 1%, and Laureate Education reported a revenue decline of 14.2%, topping estimates by 4.9%. Strategic Education’s stock price was unchanged after the resultswhile Laureate Education was up 11.2%.
Read our full analysis of Strategic Education’s results here and Laureate Education’s results here.
There has been positive sentiment among investors in the education services segment, with share prices up 12.7% on average over the last month. Adtalem is up 14.4% during the same time and is heading into earnings with an average analyst price target of $123.50 (compared to the current share price of $113).
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