Q1 Earnings Highs And Lows: Laureate Education (NASDAQ:LAUR) Vs The Rest Of The Education Services Stocks
Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at Laureate Education (NASDAQ:LAUR) 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 strong Q1; on average, revenues beat analyst consensus estimates by 3.6%. while next quarter's revenue guidance was in line with consensus. 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 due to mixed inflation data, but education services stocks have exhibited impressive performance, with the share prices up 10.8% on average since the previous earnings results.
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 $275.4 million, up 9.6% year on year, topping analysts' expectations by 2.3%. It was a mixed quarter for the company, with an impressive beat of analysts' revenue estimates but a miss of analysts' earnings estimates.
Eilif Serck-Hanssen, President and Chief Executive Officer, said, “Last month we celebrated our 25th anniversary and reflected on the positive impact we have had on millions of lives, including through expanding access to higher education in Mexico and Peru. I extend my sincere gratitude to all faculty and staff, past and present, who have played a significant role in our success.”
The stock is up 10.2% since the results and currently trades at $16.08.
Is now the time to buy Laureate Education? Access our full analysis of the earnings results here, it's free.
Best Q1: 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 $290.3 million, up 13.1% year on year, outperforming analysts' expectations by 5.8%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is up 14.1% since the results and currently trades at $114.81.
Is now the time to buy Strategic Education? Access our full analysis of the earnings results here, it's free.
Bright Horizons (NYSE:BFAM)
Founded in 1986, Bright Horizons (NYSE:BFAM) is a global provider of child care, early education, and workforce support solutions.
Bright Horizons reported revenues of $622.7 million, up 12.5% year on year, exceeding analysts' expectations by 1.2%. It was a mixed quarter for the company, with a decent beat of analysts' organic revenue estimates but full-year revenue guidance missing analysts' expectations.
Bright Horizons had the weakest full-year guidance update in the group. The stock is up 4% since the results and currently trades at $108.41.
Read our full analysis of Bright Horizons's results here.
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 $412.7 million, up 11.8% year on year, surpassing analysts' expectations by 5.4%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates and a solid beat of analysts' revenue estimates.
Adtalem scored the highest full-year guidance raise among its peers. The stock is up 25.6% since the results and currently trades at $65.82.
Read our full, actionable report on Adtalem 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 $168.3 million, down 14% year on year, surpassing analysts' expectations by 3%. It was a very strong quarter for the company, with a solid beat of analysts' revenue and earnings estimates.
Perdoceo Education had the slowest revenue growth among its peers. The stock is up 27.9% since the results and currently trades at $23.46.
Read our full, actionable report on Perdoceo Education here, it's free.
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