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In the last-reported quarter, this leading healthcare educator’s earnings surpassed the Zacks Consensus Estimate by 23.9% and grew 151.4% year over year. Total revenues surpassed the consensus mark by 0.7% and increased 22.7% year over year.
Adtalem’s earnings beat the consensus mark in two of the last four quarters and missed in the other two, with the average earnings surprise being 0.8%.
Trend in Estimate Revision
The Zacks Consensus Estimate for fiscal second-quarter earnings has remained unchanged at 89 cents per share over the past 60 days. The estimated figure indicates 18.7% increase from the year-ago earnings of 75 cents per share. The consensus mark for revenues is $354.51 million, suggesting 4.5% year-over-year growth decline.
Factors to Note
Adtalem’s fiscal second-quarter revenues are likely to have declined due to lower enrollment. The company has been operating in a challenging macro environment, marked by high inflation and a tight labor market.
Nonetheless, the Walden acquisition, along with operational efficiency and realization of cost synergies from the Walden integration, may have offset the negatives to some extent.
Adtalem’s post-licensure nursing programs, strategic focus and significant scale are likely to have aided the company in meeting the healthcare industry’s critical workforce talent needs. Moreover, ATGE has de-risked its business with the divesture of its Financial Services segment, thereby aiding higher profit generation in the to-be-reported quarter.
In order to address increasing cost pressure, Adtalem has been carrying out cost-saving initiatives like workforce reduction, centralized operations and discretionary expenditure control through supply management. The company is following a strict cost-control routine, with special emphasis on controlling and escalating costs at some of its institutions. These actions are likely to have enhanced operational and strategic flexibility and boosted profit level in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for ATGE this time around. That is because a stock needs to have both, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), for this to happen. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: ATGE has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies in the Zacks Consumer Discretionary sector that, according to our model, have the right combination of elements to post an earnings beat in their respective quarters to be reported.
BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) boasts an Earnings ESP of +18.48% and a Zacks Rank #1.
BJ’s earnings topped the consensus mark in all the last four quarters, with the average earnings surprisebeing 18.2%. Earnings for the to-be-reported quarter are expected to grow 10% year over year.
iQIYI, Inc. (IQ - Free Report) has an Earnings ESP of +20.00% and a Zacks Rank #2.
IQ’s earnings topped the consensus mark in three of the last four quarters and missed the same in the other one, with the average negative surprise being 9%. Earnings for the to-be-reported quarter are expected to increase 125% year over year.
Red Rock Resorts, Inc. (RRR - Free Report) has an Earnings ESP of +17.33% and a Zacks Rank #3.
RRR’s earnings topped the consensus mark in all the last four quarters, with the average earnings surprise being 66.7%. Earnings for the to-be-reported quarter are likely to grow 1.8% year over year.
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Adtalem (ATGE) to Report Q2 Earnings: Here's What to Expect
Adtalem Global Education Inc. (ATGE - Free Report) is scheduled to report second-quarter of fiscal 2023 results on Feb 2, after the closing bell.
In the last-reported quarter, this leading healthcare educator’s earnings surpassed the Zacks Consensus Estimate by 23.9% and grew 151.4% year over year. Total revenues surpassed the consensus mark by 0.7% and increased 22.7% year over year.
Adtalem’s earnings beat the consensus mark in two of the last four quarters and missed in the other two, with the average earnings surprise being 0.8%.
Trend in Estimate Revision
The Zacks Consensus Estimate for fiscal second-quarter earnings has remained unchanged at 89 cents per share over the past 60 days. The estimated figure indicates 18.7% increase from the year-ago earnings of 75 cents per share. The consensus mark for revenues is $354.51 million, suggesting 4.5% year-over-year growth decline.
Factors to Note
Adtalem’s fiscal second-quarter revenues are likely to have declined due to lower enrollment. The company has been operating in a challenging macro environment, marked by high inflation and a tight labor market.
Adtalem Global Education Inc. Price and Consensus
Adtalem Global Education Inc. price-consensus-chart | Adtalem Global Education Inc. Quote
Nonetheless, the Walden acquisition, along with operational efficiency and realization of cost synergies from the Walden integration, may have offset the negatives to some extent.
Adtalem’s post-licensure nursing programs, strategic focus and significant scale are likely to have aided the company in meeting the healthcare industry’s critical workforce talent needs. Moreover, ATGE has de-risked its business with the divesture of its Financial Services segment, thereby aiding higher profit generation in the to-be-reported quarter.
In order to address increasing cost pressure, Adtalem has been carrying out cost-saving initiatives like workforce reduction, centralized operations and discretionary expenditure control through supply management. The company is following a strict cost-control routine, with special emphasis on controlling and escalating costs at some of its institutions. These actions are likely to have enhanced operational and strategic flexibility and boosted profit level in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for ATGE this time around. That is because a stock needs to have both, a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), for this to happen. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: ATGE has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable Combination
Here are some companies in the Zacks Consumer Discretionary sector that, according to our model, have the right combination of elements to post an earnings beat in their respective quarters to be reported.
BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) boasts an Earnings ESP of +18.48% and a Zacks Rank #1.
BJ’s earnings topped the consensus mark in all the last four quarters, with the average earnings surprisebeing 18.2%. Earnings for the to-be-reported quarter are expected to grow 10% year over year.
iQIYI, Inc. (IQ - Free Report) has an Earnings ESP of +20.00% and a Zacks Rank #2.
IQ’s earnings topped the consensus mark in three of the last four quarters and missed the same in the other one, with the average negative surprise being 9%. Earnings for the to-be-reported quarter are expected to increase 125% year over year.
Red Rock Resorts, Inc. (RRR - Free Report) has an Earnings ESP of +17.33% and a Zacks Rank #3.
RRR’s earnings topped the consensus mark in all the last four quarters, with the average earnings surprise being 66.7%. Earnings for the to-be-reported quarter are likely to grow 1.8% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.