What To Expect From Lincoln Educational’s (LINC) Q3 Earnings

LINC Cover Image

Education company Lincoln Educational (NASDAQ: LINC) will be reporting earnings this Monday before the bell. Hereโ€™s what to look for.

Lincoln Educational beat analystsโ€™ revenue expectations by 0.5% last quarter, reporting revenues of $116.5 million, up 13.2% year on year. It was a very strong quarter for the company, with a beat of analystsโ€™ EPS estimates and a solid beat of analystsโ€™ adjusted operating income estimates. It reported 14,356 enrolled students, flat year on year.

Is Lincoln Educational a buy or sell going into earnings? Read our full analysis here, itโ€™s free for active Edge members.

This quarter, analysts are expecting Lincoln Educationalโ€™s revenue to grow 14.9% year on year to $131.5 million, in line with the 14.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.12 per share.

Lincoln Educational Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lincoln Educational has a history of exceeding Wall Streetโ€™s expectations, beating revenue estimates every single time over the past two years by 3.4% on average.

Looking at Lincoln Educationalโ€™s peers in the education services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Strategic Education delivered year-on-year revenue growth of 4.6%, beating analystsโ€™ expectations by 1.7%, and Bright Horizons reported revenues up 11.6%, topping estimates by 2.9%. Strategic Education traded up 1.7% following the results while Bright Horizons was also up 18.2%.

Read our full analysis of Strategic Educationโ€™s results here and Bright Horizonsโ€™s results here.

Investors in the education services segment have had steady hands going into earnings, with share prices flat over the last month. Lincoln Educational is down 12.5% during the same time and is heading into earnings with an average analyst price target of $26.20 (compared to the current share price of $18.63).

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