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Adtalem (ATGE) Stock Up 8.9% on Q2 Earnings & Revenue Beat
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Adtalem Global Education Inc. (ATGE - Free Report) reported stellar results for second-quarter fiscal 2021, wherein the company’s earnings and revenues not only topped analysts’ expectations but also grew from the year-ago level. Following the announcement, shares of the company gained 8.9% in the after-hours trading session on Feb 2.
For the quarter under review, adjusted earnings came in at 77 cents per share, which handily beat the consensus mark of 68 cents by 13.2%. The metric also increased 35.1% on a year-over-year basis.
Revenues & Operating Discussion
Quarterly revenues of $283.1 million beat the consensus mark by 1.8% and increased 6.4% year over year owing to enrolment growth at Chamberlain, as well as strong financial performance across Medical and Healthcare segment. For the fiscal second quarter, enrollment of new and total students grew 7.5% and 9.3% year over year, respectively.
Adjusted operating income from continuing operations of $52.6 million increased 24.4% year over year. The upside can be primarily attributed to cost efficiencies and increased revenues across the organization.
Adtalem Global Education Inc. Price, Consensus and EPS Surprise
Medical and Healthcare: During the fiscal second quarter, revenues in the segment grew 6.5% year over year to $234.4 million.
In Chamberlain, revenues grew 13.2% year over year. New and total student enrollment for the November session increased 8.1% and 10.2% year over year, respectively.
Medical and Veterinary schools’ revenues decreased 2.4% year over year owing to COVID-19-led reduced clinical weeks at the medical schools and the loss of student transportation revenues. However, this was partially offset by a rise in student enrollment.
Adjusted operating income in the segment was $51.3 million, up 23.3% from the prior-year level on strong enrollment trends at Chamberlain, lower bad debt expenses and other operational improvements.
Financial Services: Revenues in the segment totaled $48.7 million, up 5.9% year over year, given higher revenues at OnCourse Learning and Becker. Revenues at Becker increased year over year due to growth in both CPA and CPE education program offerings. Adjusted operating income increased 37.2% from the prior-year quarter to $7.8 million.
Liquidity & Cash Flow
As of Dec 31, 2020, Adtalem had cash and cash equivalents of $449.3 million compared with $500.5 million at fiscal 2020-end. For the six months ended Dec 31, cash provided by operating activities totaled $63.4 million against $13.7 million reported in the year-ago period.
2021 Guidance
For fiscal 2021, Adtalem expects revenue growth of 5-7% and earnings per share from continuing operations (excluding special items) within 25-30%.
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Adtalem (ATGE) Stock Up 8.9% on Q2 Earnings & Revenue Beat
Adtalem Global Education Inc. (ATGE - Free Report) reported stellar results for second-quarter fiscal 2021, wherein the company’s earnings and revenues not only topped analysts’ expectations but also grew from the year-ago level. Following the announcement, shares of the company gained 8.9% in the after-hours trading session on Feb 2.
For the quarter under review, adjusted earnings came in at 77 cents per share, which handily beat the consensus mark of 68 cents by 13.2%. The metric also increased 35.1% on a year-over-year basis.
Revenues & Operating Discussion
Quarterly revenues of $283.1 million beat the consensus mark by 1.8% and increased 6.4% year over year owing to enrolment growth at Chamberlain, as well as strong financial performance across Medical and Healthcare segment. For the fiscal second quarter, enrollment of new and total students grew 7.5% and 9.3% year over year, respectively.
Adjusted operating income from continuing operations of $52.6 million increased 24.4% year over year. The upside can be primarily attributed to cost efficiencies and increased revenues across the organization.
Adtalem Global Education Inc. Price, Consensus and EPS Surprise
Adtalem Global Education Inc. price-consensus-eps-surprise-chart | Adtalem Global Education Inc. Quote
Segment Details
Medical and Healthcare: During the fiscal second quarter, revenues in the segment grew 6.5% year over year to $234.4 million.
In Chamberlain, revenues grew 13.2% year over year. New and total student enrollment for the November session increased 8.1% and 10.2% year over year, respectively.
Medical and Veterinary schools’ revenues decreased 2.4% year over year owing to COVID-19-led reduced clinical weeks at the medical schools and the loss of student transportation revenues. However, this was partially offset by a rise in student enrollment.
Adjusted operating income in the segment was $51.3 million, up 23.3% from the prior-year level on strong enrollment trends at Chamberlain, lower bad debt expenses and other operational improvements.
Financial Services: Revenues in the segment totaled $48.7 million, up 5.9% year over year, given higher revenues at OnCourse Learning and Becker. Revenues at Becker increased year over year due to growth in both CPA and CPE education program offerings. Adjusted operating income increased 37.2% from the prior-year quarter to $7.8 million.
Liquidity & Cash Flow
As of Dec 31, 2020, Adtalem had cash and cash equivalents of $449.3 million compared with $500.5 million at fiscal 2020-end. For the six months ended Dec 31, cash provided by operating activities totaled $63.4 million against $13.7 million reported in the year-ago period.
2021 Guidance
For fiscal 2021, Adtalem expects revenue growth of 5-7% and earnings per share from continuing operations (excluding special items) within 25-30%.
Zacks Rank & Peer Releases
Adtalem — which shares space with Strategic Education, Inc. (STRA - Free Report) , American Public Education, Inc. (APEI - Free Report) and Stride, Inc. (LRN - Free Report) in the Zacks Schools industry — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>