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School Stock Q3 Earnings to Watch on Nov 1: BFAM, DV, GPX
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According to our latest Earnings Preview 40% of consumer discretionary companies have already reported their third-quarter 2016 results. Of these, 64.3% have surpassed earnings estimates while 50% have beat revenue expectations. Total earnings of these consumer discretionary companies increased 8.2% on 8.4% higher revenues.
Coming to the school industry within the consumer discretionary sector, enrollments have been sluggish, due to regulatory challenges, changes and competition in the higher education industry.
Therefore, the U.S. education companies are implementing various initiatives to attract students. For instance, DeVry Education Group Inc. (DV - Free Report) recently introduced more technology-focused, stackable programs. Meanwhile, Universal Technical Institute, Inc. (UTI - Free Report) has decided to implement cost-saving initiatives and reorganize its business processes.
These are focused on improving the affordability of the programs, upgrading the programs 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 part of a workforce that enjoys strong demand in the employment market.
However, there is reluctance among students to enroll in academic programs and take loans to fund them. They would rather accept whatever job they are offered for their present qualifications. 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 bright for the others.
So far, some of the leading companies in the school industry have reported their third-quarter numbers. Capella Education Company posted third-quarter results wherein earnings beat the Zacks Consensus Estimate and revenues missed the same. Strayer Education Inc.’s (STRA - Free Report) third-quarter earnings beat the Zacks Consensus Estimate by 19%.
Three companies from the school industry are set to report their third-quarter results on Nov 1. Let's see how things are shaping up for their respective announcements.
Headquartered in Watertown, MA, Bright Horizons Family Solutions,Inc. (BFAM - Free Report) is engaged in providing employer-sponsored child care, early education and work/life solutions.
As per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings.
Thus, we cannot conclusively predict a beat for the company as it has an earnings ESP of 0.00% and a Zacks Rank #3. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Meanwhile, the company has beaten estimates in two of the past four quarters, resulting in an average positive surprise of 2.32%.
The Zacks Consensus Estimate for third-quarter fiscal 2016 earnings is pegged at 47 cents reflecting an increase of 17.5% year over year, while the consensus for revenues is at $388.9 million, reflecting a 6.28% year-over-year increase.
DeVry Education Group Inc. (DV - Free Report) is a provider of educational services in a wide range of disciplines, including online secondary education services.
The company posted a positive surprise of 6.56% in the last reported quarter. The company has beaten estimates in all of the past four quarters, resulting in an average positive surprise of 7.89%.
The company has an earnings ESP of 0.00% and a Zacks Rank #4 (Sell). Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Meanwhile, the Zacks Consensus Estimate for third-quarter 2016 earnings is pegged at 41 cents.
GP Strategies Corp. is a global provider of training and e-Learning solutions, management consulting, and engineering services.
The company’s earnings ESP of 0.00% and Zacks Rank #4 again dims possibilities of a beat in the quarter.
The company posted a negative surprise of 9.38% in the last reported quarter. The company has beaten estimates in only one of the past four quarters, resulting in an average negative surprise of 7.60%.
The Zacks Consensus Estimate for third-quarter 2016 earnings is pegged at 28 cents while the consensus for revenues is at $120.71 million, reflecting a 1.818% year-over-year decrease.
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School Stock Q3 Earnings to Watch on Nov 1: BFAM, DV, GPX
According to our latest Earnings Preview 40% of consumer discretionary companies have already reported their third-quarter 2016 results. Of these, 64.3% have surpassed earnings estimates while 50% have beat revenue expectations. Total earnings of these consumer discretionary companies increased 8.2% on 8.4% higher revenues.
Coming to the school industry within the consumer discretionary sector, enrollments have been sluggish, due to regulatory challenges, changes and competition in the higher education industry.
Therefore, the U.S. education companies are implementing various initiatives to attract students. For instance, DeVry Education Group Inc. (DV - Free Report) recently introduced more technology-focused, stackable programs. Meanwhile, Universal Technical Institute, Inc. (UTI - Free Report) has decided to implement cost-saving initiatives and reorganize its business processes.
These are focused on improving the affordability of the programs, upgrading the programs 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 part of a workforce that enjoys strong demand in the employment market.
However, there is reluctance among students to enroll in academic programs and take loans to fund them. They would rather accept whatever job they are offered for their present qualifications. 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 bright for the others.
So far, some of the leading companies in the school industry have reported their third-quarter numbers. Capella Education Company posted third-quarter results wherein earnings beat the Zacks Consensus Estimate and revenues missed the same. Strayer Education Inc.’s (STRA - Free Report) third-quarter earnings beat the Zacks Consensus Estimate by 19%.
Three companies from the school industry are set to report their third-quarter results on Nov 1. Let's see how things are shaping up for their respective announcements.
Headquartered in Watertown, MA, Bright Horizons Family Solutions, Inc. (BFAM - Free Report) is engaged in providing employer-sponsored child care, early education and work/life solutions.
As per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings.
Thus, we cannot conclusively predict a beat for the company as it has an earnings ESP of 0.00% and a Zacks Rank #3. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Meanwhile, the company has beaten estimates in two of the past four quarters, resulting in an average positive surprise of 2.32%.
The Zacks Consensus Estimate for third-quarter fiscal 2016 earnings is pegged at 47 cents reflecting an increase of 17.5% year over year, while the consensus for revenues is at $388.9 million, reflecting a 6.28% year-over-year increase.
BRIGHT HORZN FS Price and EPS Surprise
BRIGHT HORZN FS Price and EPS Surprise | BRIGHT HORZN FS Quote
DeVry Education Group Inc. (DV - Free Report) is a provider of educational services in a wide range of disciplines, including online secondary education services.
The company posted a positive surprise of 6.56% in the last reported quarter. The company has beaten estimates in all of the past four quarters, resulting in an average positive surprise of 7.89%.
The company has an earnings ESP of 0.00% and a Zacks Rank #4 (Sell). Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Meanwhile, the Zacks Consensus Estimate for third-quarter 2016 earnings is pegged at 41 cents.
DEVRY EDUCATION Price and EPS Surprise
DEVRY EDUCATION Price and EPS Surprise | DEVRY EDUCATION Quote
GP Strategies Corp. is a global provider of training and e-Learning solutions, management consulting, and engineering services.
The company’s earnings ESP of 0.00% and Zacks Rank #4 again dims possibilities of a beat in the quarter.
The company posted a negative surprise of 9.38% in the last reported quarter. The company has beaten estimates in only one of the past four quarters, resulting in an average negative surprise of 7.60%.
The Zacks Consensus Estimate for third-quarter 2016 earnings is pegged at 28 cents while the consensus for revenues is at $120.71 million, reflecting a 1.818% year-over-year decrease.
GP STRATEGIES Price and EPS Surprise
GP STRATEGIES Price and EPS Surprise | GP STRATEGIES Quote
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>