Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Education Services Stocks Q1 Results: Benchmarking Adtalem (NYSE:ATGE)

ATGE Cover Image

As the Q1 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 Adtalem (NYSE: ATGE) 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 very strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.3% 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 2.2% on average since the latest earnings results.

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 $466.1 million, up 12.9% year on year. This print exceeded analysts’ expectations by 4.4%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates.

Adtalem Total Revenue

Unsurprisingly, the stock is down 1.6% since reporting and currently trades at $114.20.

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

Best Q1: Strategic Education (NASDAQ: STRA)

Formed through the merger of Strayer Education and Capella Education in 2018, Strategic Education (NASDAQ: STRA) is a career-focused higher education provider.

Strategic Education reported revenues of $303.6 million, up 4.6% year on year, outperforming analysts’ expectations by 1%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.

Strategic Education Total Revenue

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 3.3% since reporting. It currently trades at $77.63.

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

Slowest Q1: 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 $289.3 million, up 5.3% year on year, exceeding analysts’ expectations by 0.8%. It was a satisfactory quarter as it also posted EPS guidance for next quarter exceeding analysts’ expectations.

As expected, the stock is down 9% since the results and currently trades at $168.69.

Read our full analysis of Grand Canyon 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 $207.4 million, up 12.6% year on year. This result surpassed analysts’ expectations by 2.8%. Overall, it was an exceptional quarter as it also logged a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Universal Technical Institute achieved the highest full-year guidance raise among its peers. The stock is up 6.4% since reporting and currently trades at $31.53.

Read our full, actionable report on Universal Technical Institute 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 $213 million, up 26.6% year on year. This number beat analysts’ expectations by 2.4%. It was a strong quarter as it also put up EPS guidance for next quarter exceeding analysts’ expectations and full-year EPS guidance topping analysts’ expectations.

Perdoceo Education pulled off the fastest revenue growth among its peers. The stock is up 12.2% since reporting and currently trades at $28.23.

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

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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

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