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Lincoln Educational (NASDAQ:LINC) Q2 Earnings: Leading The Education Services Pack

LINC Cover Image

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at 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 Q2. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 4.5% on average since the latest earnings results.

Best Q2: 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 $116.5 million, up 13.2% year on year. This print exceeded analysts’ expectations by 0.5%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

“Our operating and financial momentum continued to build throughout the second quarter as we generated nearly 22 percent student start growth and grew revenues by more than 15 percent from campus operations, as well as increased consolidated adjusted EBITDA by 68%. As a result of our performance continuing to exceed expectations during the first half of 2025, and current operating trends, we are raising our full-year guidance,” said Scott Shaw, President and CEO.

Lincoln Educational Total Revenue

Unsurprisingly, the stock is down 18.4% since reporting and currently trades at $19.38.

Is now the time to buy Lincoln Educational? Access our full analysis of the earnings results here, it’s free.

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 $247.5 million, up 8.8% year on year, outperforming analysts’ expectations by 2.8%. The business had a very strong quarter with an impressive beat of analysts’ adjusted operating income estimates and EPS guidance for next quarter exceeding analysts’ expectations.

Grand Canyon Education Total Revenue

The market seems happy with the results as the stock is up 18.5% since reporting. It currently trades at $204.27.

Is now the time to buy Grand Canyon Education? Access our full analysis of the earnings results here, it’s free.

Perdoceo Education (NASDAQ: PRDO)

Formerly known as Career Education Corporation, Perdoceo Education (NASDAQ: PRDO) is an educational services company that specializes in postsecondary education.

Perdoceo Education reported revenues of $209.6 million, up 25.7% year on year, exceeding analysts’ expectations by 1.3%. It was a satisfactory quarter as it also posted a decent beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations.

Interestingly, the stock is up 14.2% since the results and currently trades at $32.92.

Read our full analysis of Perdoceo Education’s results here.

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 $204.3 million, up 15.1% year on year. This number topped analysts’ expectations by 2%. Overall, it was a very strong quarter as it also produced a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.

Universal Technical Institute had the weakest full-year guidance update among its peers. The stock is down 19.4% since reporting and currently trades at $26.93.

Read our full, actionable report on Universal Technical Institute here, it’s free.

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 $457.1 million, up 11.5% year on year. This result beat analysts’ expectations by 4%. It was a strong quarter as it also put up full-year revenue guidance beating analysts’ expectations and full-year EPS guidance topping analysts’ expectations.

Adtalem delivered the biggest analyst estimates beat among its peers. The stock is up 12.7% since reporting and currently trades at $134.45.

Read our full, actionable report on Adtalem here, it’s free.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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