Q4 Rundown: Adtalem (NYSE:ATGE) Vs Other Education Services Stocks
Earnings results often indicate what direction a company will take in the months ahead. With Q4 now behind us, let’s have a look at Adtalem (NYSE:ATGE) and its peers.
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 very strong Q4; on average, revenues beat analyst consensus estimates by 3.7%, while next quarter's revenue guidance was 2% above consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, though the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and education services stocks have held roughly steady amidst all this, with share prices up 1.8% on average since the previous earnings results.
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 $393.2 million, up 8.4% year on year, topping analyst expectations by 5.5%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates and full-year revenue guidance exceeding analysts' expectations.
“Adtalem once again performed ahead of expectations this quarter, solidifying our position as a leading healthcare educator,” said Steve Beard, president, and chief executive officer, Adtalem Global Education.
The stock is down 2.8% since the results and currently trades at $46.33.
Is now the time to buy Adtalem? Access our full analysis of the earnings results here, it's free.
Best Q4: Universal Technical Institute (NYSE:UTI)
Founded in 1965, Universal Technical Institute (NYSE: UTI) is a leading provider of technical training programs, specializing in automotive, diesel, collision repair, motorcycle, and marine technicians.
Universal Technical Institute reported revenues of $174.7 million, up 45.6% year on year, outperforming analyst expectations by 3.8%. It was an exceptional quarter for the company, with an impressive beat of analysts' revenue and earnings estimates.
Universal Technical Institute achieved the fastest revenue growth among its peers. The stock is down 0.7% since the results and currently trades at $14.58.
Is now the time to buy Universal Technical Institute? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $409.4 million, up 18.2% year on year, exceeding analyst expectations by 5.6%. It was a mixed quarter for the company, with a solid beat of analysts' revenue estimates but a miss of analysts' earnings estimates.
The stock is up 7.1% since the results and currently trades at $14.04.
Read our full analysis of Laureate Education's results here.
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 $302.7 million, up 12.1% year on year, surpassing analyst expectations by 1.8%. It was an impressive quarter for the company, with a decent beat of analysts' earnings estimates.
The stock is up 3% since the results and currently trades at $98.11.
Read our full, actionable report on Strategic Education here, it's free.
Perdoceo Education (NASDAQ:PRDO)
Formerly known as Career Education Corporation, Perdoceo Education (NASDAQ:PRDO) is an educational services company that specializes in postsecondary education.
Perdoceo Education reported revenues of $147.9 million, down 16% year on year, surpassing analyst expectations by 1.2%. It was an impressive quarter for the company, with a decent beat of analysts' revenue and earnings estimates.
Perdoceo Education had the slowest revenue growth among its peers. The stock is up 2% since the results and currently trades at $17.33.
Read our full, actionable report on Perdoceo Education here, it's free.
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