Earnings To Watch: Adtalem (ATGE) Reports Q1 Results Tomorrow

Vocational education company Adtalem Global Education (NYSE:ATGE) will be announcing earnings results tomorrow after the bell. Here's what you need to know.

Adtalem beat analysts' revenue expectations by 5.5% last quarter, reporting revenues of $393.2 million, up 8.4% year on year. 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.

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 6.1% year on year to $391.7 million, improving from the 1.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.16 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. Adtalem 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 Adtalem's peers in the consumer discretionary 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 13.1%, beating analysts' expectations by 5.8%, and Nike reported flat revenue, topping estimates by 1.1%. Strategic Education traded up 20.2% following the results while Nike was down 7%.

Read our full analysis of Strategic Education's results here and Nike's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share prices down 5.9% on average over the last month. Adtalem is down 3.7% during the same time and is heading into earnings with an average analyst price target of $65 (compared to the current share price of $49.62).

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