Vocational education company Covista (NYSE: CVSA) will be announcing earnings results this Thursday after market close. Here’s what to look for.
Covista beat analysts’ revenue expectations last quarter, reporting revenues of $487 million, up 4.5% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates.
Is Covista a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Covista’s revenue to grow 6.4% year on year, slowing from the 11.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Covista has a history of exceeding Wall Street’s expectations.
Looking at Covista’s peers in the consumer discretionary - education services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Laureate Education delivered year-on-year revenue growth of 17.5%, beating analysts’ expectations by 2.3%, and Bright Horizons reported revenues up 6.5%, topping estimates by 0.6%. Laureate Education’s stock price was unchanged after the resultswhile Bright Horizons was down 4.4%.
Read our full analysis of Laureate Education’s results here and Bright Horizons’s results here.
Investors in the consumer discretionary - education services segment have had steady hands going into earnings, with share prices up 1.2% on average over the last month. Covista’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $156.25 (compared to the current share price of $129.89).
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