By Christiana Sciaudone
Investing.com -- School may be closed, but child care center operator Bright Horizons (NYSE:BFAM) will take your tykes. And that's helping to push shares up 11% on Thursday after the company said most centers should be operational next month.
While second quarter results dropped precipitously from a year earlier, they easily beat forecasts.
Earnings per share of 44 cents compared to the expected loss per share of 58 cents on sales of $294 million versus the average forecast of $197 million, according to analysts tracked by Investing.com.
Sales dropped 44%, and income from operations fell 89% from a year earlier.
"Our experience over the last several months operating our child care centers during the pandemic has extended our expertise in safe and healthy practices and uniquely positions us to capitalize on the long-term opportunity that lies ahead," said Chief Executive Officer Stephen Kramer.
Bright Horizons kept critical health care client and “hub” centers open to provide care for children whose parents work on the front lines of the response. As of June 30, over 400 of 1,076 child care centers were operating.
"We plan to continue this phased re-opening through the third and fourth quarters of 2020, and potentially in subsequent periods, and expect to have more than 85% of our centers open by September 30," Kramer said.
Additionally, Bright Horizons's 61 centers in the Netherlands remained open for the entire quarter.
Back-up Care and Educational Advisory have remained fully operational throughout.
Shares have three buy ratings, two holds and one sell.