Looking back on education services stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Grand Canyon Education (NASDAQ: LOPE) 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.
Luckily, education services stocks have performed well with share prices up 12.2% on average since the latest earnings results.
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. This print exceeded analysts’ expectations by 2.8%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and EPS guidance for next quarter exceeding analysts’ expectations.
Interestingly, the stock is up 24.7% since reporting and currently trades at $214.90.
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, outperforming analysts’ expectations by 0.5%. The business had a very strong quarter with a beat of analysts’ EPS and adjusted operating income estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 5.6% since reporting. It currently trades at $22.40.
Is now the time to buy Lincoln Educational? 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 28% since the results and currently trades at $36.90.
Read our full analysis of Perdoceo Education’s results here.
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 surpassed analysts’ expectations by 4%. It was a strong quarter as it also put up full-year revenue and EPS guidance topping analysts’ expectations.
Adtalem pulled off the biggest analyst estimates beat among its peers. The stock is up 24.5% since reporting and currently trades at $148.47.
Read our full, actionable report on Adtalem here, it’s free.
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 $524.2 million, up 5% year on year. This number beat analysts’ expectations by 1.5%. Overall, it was a very strong quarter as it also logged full-year revenue guidance beating analysts’ expectations and a solid beat of analysts’ adjusted operating income estimates.
Laureate Education achieved the highest full-year guidance raise among its peers. The stock is up 34.1% since reporting and currently trades at $30.62.
Read our full, actionable report on Laureate Education here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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