Bright Horizons (NYSE:BFAM): Strongest Q4 Results from the Education Services Group

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at education services stocks, starting with Bright Horizons (NYSE:BFAM).

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 Q4. As a group, revenues beat analysts’ consensus estimates by 3.7% while next quarter’s revenue guidance was in line.

While some education services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.4% since the latest earnings results.

Best Q4: Bright Horizons (NYSE:BFAM)

Bright Horizons reported revenues of $674.1 million, up 9.5% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ adjusted operating income estimates but full-year revenue guidance slightly missing analysts’ expectations.

Interestingly, the stock is up 9.1% since reporting and currently trades at $129.66.

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Strategic Education (NASDAQ:STRA)

Strategic Education reported revenues of $311.5 million, up 2.9% year on year, in line with analysts’ expectations. The business performed better than its peers, but it was unfortunately a mixed quarter with a decent beat of analysts’ EBITDA estimates but a miss of analysts’ international students estimates.

Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 17.8% since reporting. It currently trades at $80.53.

Weakest Q4: Laureate Education (NASDAQ:LAUR)

Laureate Education reported revenues of $423.4 million, up 3.4% year on year, exceeding analysts’ expectations by 2.2%. Still, it was a weak quarter as it posted full-year revenue guidance missing analysts’ expectations.

Laureate Education delivered the weakest full-year guidance update in the group. The stock is flat since the results and currently trades at $20.

Lincoln Educational (NASDAQ:LINC)

Lincoln Educational reported revenues of $119.4 million, up 16.4% year on year. This result topped analysts’ expectations by 6.9%. Overall, it was a very strong quarter as it also produced full-year EBITDA guidance exceeding analysts’ expectations.

Lincoln Educational achieved the highest full-year guidance raise among its peers. The stock is up 12.1% since reporting and currently trades at $18.03.

Adtalem (NYSE:ATGE)

Adtalem reported revenues of $447.7 million, up 13.9% year on year. This print beat analysts’ expectations by 4.7%. It was an exceptional quarter as it also logged an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is flat since reporting and currently trades at $102.31.

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This content was originally published on Stock Story