Child care and education company Bright Horizons (NYSE: BFAM) will be reporting earnings tomorrow after market close. Here’s what to expect.
Bright Horizons met analysts’ revenue expectations last quarter, reporting revenues of $674.1 million, up 9.5% year on year. 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.
Is Bright Horizons a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Bright Horizons’s revenue to grow 6.9% year on year to $665.5 million, slowing from the 12.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.64 per share.
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. Bright Horizons has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Bright Horizons’s peers in the education services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Strategic Education delivered year-on-year revenue growth of 4.6%, beating analysts’ expectations by 1%, and Laureate Education reported a revenue decline of 14.2%, topping estimates by 4.9%. Strategic Education’s stock price was unchanged after the results, while Laureate Education was up 11.2%.
Read our full analysis of Strategic Education’s results here and Laureate Education’s results here.
There has been positive sentiment among investors in the education services segment, with share prices up 8.8% on average over the last month. Bright Horizons is up 14.9% during the same time and is heading into earnings with an average analyst price target of $138.15 (compared to the current share price of $128.18).
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