As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the education services industry, including Lincoln Educational (NASDAQ: LINC) 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 Q4. As a group, revenues beat analysts’ consensus estimates by 3.7% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.5% since the latest earnings results.
Lincoln Educational (NASDAQ: LINC)
Established in 1946, Lincoln Educational (NASDAQ: LINC) is a provider of specialized technical training in the United States, offering career-oriented programs to provide practical skills required in the workforce.
Lincoln Educational reported revenues of $119.4 million, up 16.4% year on year. This print exceeded analysts’ expectations by 6.9%. Overall, it was a very strong quarter for the company with full-year EBITDA guidance exceeding analysts’ expectations.
“We had a very strong finish to 2024, achieving or exceeding all of our guidance metrics while we continued to invest in our growth strategies,” said Scott Shaw, President & CEO.
Lincoln Educational scored the highest full-year guidance raise of the whole group. The stock is up 3.4% since reporting and currently trades at $16.63.
Is now the time to buy Lincoln Educational? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $447.7 million, up 13.9% year on year, outperforming analysts’ expectations by 4.7%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 7.5% since reporting. It currently trades at $94.77.
Is now the time to buy Adtalem? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $423.4 million, up 3.4% year on year, exceeding analysts’ expectations by 2.2%. Still, it was a mixed quarter as it posted full-year revenue guidance missing analysts’ expectations.
Laureate Education delivered the weakest full-year guidance update in the group. As expected, the stock is down 1.1% since the results and currently trades at $19.91.
Read our full analysis of Laureate Education’s results here.
Grand Canyon Education (NASDAQ: LOPE)
Founded in 1949, Grand Canyon Education (NASDAQ: LOPE) is an educational services provider known for its operation at Grand Canyon University.
Grand Canyon Education reported revenues of $292.6 million, up 5.1% year on year. This print topped analysts’ expectations by 1.1%. Taking a step back, it was a mixed quarter as it also produced EPS guidance for next quarter beating analysts’ expectations but full-year EPS guidance missing analysts’ expectations.
The stock is down 7.2% since reporting and currently trades at $170.79.
Read our full, actionable report on Grand Canyon Education here, it’s free.
Universal Technical Institute (NYSE: UTI)
Founded in 1965, Universal Technical Institute (NYSE: UTI) is a leading provider of technical training programs, specializing in automotive, diesel, collision repair, motorcycle, and marine technicians.
Universal Technical Institute reported revenues of $201.4 million, up 15.3% year on year. This number beat analysts’ expectations by 3.9%. It was a very strong quarter as it also produced a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is down 5.8% since reporting and currently trades at $26.77.
Read our full, actionable report on Universal Technical Institute here, it’s free.
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