Stock Story -
Vocational education company Adtalem Global Education (NYSE:ATGE) will be announcing earnings results tomorrow after market hours. Here's what to look for.
Adtalem beat analysts' revenue expectations by 5.4% last quarter, reporting revenues of $412.7 million, up 11.8% year on year. It was a 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? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Adtalem's revenue to grow 9.3% year on year to $398.6 million, improving from the 1.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.28 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 3.3% on average.
Looking at Adtalem's peers in the education services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Strategic Education delivered year-on-year revenue growth of 8.5%, beating analysts' expectations by 1.3%, and Laureate Education reported revenues up 8%, topping estimates by 3.2%. Strategic Education traded down 19.8% following the results while Laureate Education was also down 7.6%.
Read the full analysis of Strategic Education's and Laureate Education's results on StockStory.
There has been positive sentiment among investors in the education services segment, with share prices up 3.3% on average over the last month. Adtalem is up 9.3% during the same time and is heading into earnings with an average analyst price target of $78.7 (compared to the current share price of $74.52).
