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School Stocks Earnings Releases Slated for Aug 3: BFAM, LINC
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According to our earnings preview report, 48.6% of consumer discretionary companies have already reported second-quarter 2016 results. Of these, 88.2% have surpassed earnings estimates and 47.1% beat revenue expectations. Total earnings of these consumer discretionary companies increased 4.1% on 1.9% increase in revenues.
As the U.S economy is recovering at a steady pace, marked by improving employment levels and positive consumer confidence, the education companies are implementing initiatives to attract students. These are focused on improving the affordability of the programs, upgrading the programs to improve their outcome, and ensuring that the students complete their graduation. Companies are reaching out to students with new campuses and online programs to improve accessibility. The focus remains on training students to be a part of a workforce that enjoys strong demand in the employment market.
However, there is still reluctance among students to enroll in academic programs and take loans to fund them. They would rather accept whatever job offer they get and pay their bills. Though the employment situation is improving, wages are still low. It will take some time for students to realize that better education and skills will improve their career prospects in the years to come, compared to the low skill or no skill jobs that they are currently engaged in. In the current scenario, while some education companies are doing well, things are not as positive for the others.
Among the few that have reported, Capella Education Company posted impressive second-quarter 2016 results on Jul 26, beating estimates on both counts. The company recorded a year-over-year increase in earnings per share and revenues, driven by positive enrollment levels recorded at Capella University.
However, Strayer Education, Inc. (STRA - Free Report) reported disappointing second-quarter 2016 results on Jul 27 despite positive enrollment levels. The company missed the Zacks Consensus Estimate for both revenues and earnings per share. In addition, earnings, revenues and margin declined year over year, owing to lower revenue per share and slower payment from corporate alliance partners.
Two more companies from the education sector, Bright Horizons Family Solutions, Inc. (BFAM - Free Report) and Lincoln Educational Services Corporation (LINC - Free Report) are set to report their second quarter results on Aug 3. Let's see how things are shaping up for their respective announcements.
Headquartered in Watertown, MA, Bright Horizons posted a positive surprise of 2.13% in the last reported quarter. Moreover, the company has surpassed estimates in three out of the past four quarters, resulting in an average positive surprise of 3.91%.
The company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the second quarter 2016 is pegged at 58 cents.
Lincoln Educational Services Corporation (LINC - Free Report)
A leading provider of career-oriented post-secondary education, Lincoln Educational Services posted in-line results last quarter. However, the company has surpassed estimates in two out of the past four quarters, resulting in an average positive surprise of 47.42%.
The company has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for second-quarter 2016 is pegged at a loss of 21 cents.
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School Stocks Earnings Releases Slated for Aug 3: BFAM, LINC
According to our earnings preview report, 48.6% of consumer discretionary companies have already reported second-quarter 2016 results. Of these, 88.2% have surpassed earnings estimates and 47.1% beat revenue expectations. Total earnings of these consumer discretionary companies increased 4.1% on 1.9% increase in revenues.
As the U.S economy is recovering at a steady pace, marked by improving employment levels and positive consumer confidence, the education companies are implementing initiatives to attract students. These are focused on improving the affordability of the programs, upgrading the programs to improve their outcome, and ensuring that the students complete their graduation. Companies are reaching out to students with new campuses and online programs to improve accessibility. The focus remains on training students to be a part of a workforce that enjoys strong demand in the employment market.
However, there is still reluctance among students to enroll in academic programs and take loans to fund them. They would rather accept whatever job offer they get and pay their bills. Though the employment situation is improving, wages are still low. It will take some time for students to realize that better education and skills will improve their career prospects in the years to come, compared to the low skill or no skill jobs that they are currently engaged in. In the current scenario, while some education companies are doing well, things are not as positive for the others.
Among the few that have reported, Capella Education Company posted impressive second-quarter 2016 results on Jul 26, beating estimates on both counts. The company recorded a year-over-year increase in earnings per share and revenues, driven by positive enrollment levels recorded at Capella University.
However, Strayer Education, Inc. (STRA - Free Report) reported disappointing second-quarter 2016 results on Jul 27 despite positive enrollment levels. The company missed the Zacks Consensus Estimate for both revenues and earnings per share. In addition, earnings, revenues and margin declined year over year, owing to lower revenue per share and slower payment from corporate alliance partners.
Two more companies from the education sector, Bright Horizons Family Solutions, Inc. (BFAM - Free Report) and Lincoln Educational Services Corporation (LINC - Free Report) are set to report their second quarter results on Aug 3. Let's see how things are shaping up for their respective announcements.
Bright Horizons Family Solutions, Inc. (BFAM - Free Report)
Headquartered in Watertown, MA, Bright Horizons posted a positive surprise of 2.13% in the last reported quarter. Moreover, the company has surpassed estimates in three out of the past four quarters, resulting in an average positive surprise of 3.91%.
BRIGHT HORZN FS Price and EPS Surprise
BRIGHT HORZN FS Price and EPS Surprise | BRIGHT HORZN FS Quote
The company has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the second quarter 2016 is pegged at 58 cents.
Lincoln Educational Services Corporation (LINC - Free Report)
A leading provider of career-oriented post-secondary education, Lincoln Educational Services posted in-line results last quarter. However, the company has surpassed estimates in two out of the past four quarters, resulting in an average positive surprise of 47.42%.
LINCOLN EDUCATL Price and EPS Surprise
LINCOLN EDUCATL Price and EPS Surprise | LINCOLN EDUCATL Quote
The company has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for second-quarter 2016 is pegged at a loss of 21 cents.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>