Back to top

Image: Bigstock

Lincoln Stock Rises on Q1 Earnings Beat, Starts & Population Up Y/Y

Read MoreHide Full Article

Lincoln Educational Services Corporation (LINC - Free Report) reported impressive results for first-quarter 2025, with earnings and revenues surpassing the Zacks Consensus Estimate. On a year-over-year basis, both top and bottom lines increased.

The top line marked the sixth consecutive quarter of double-digit growth. This upside was backed by a 13.1% increase in the average student population, driven by strong start growth.

Shares of this diversified career-oriented post-secondary education provider gained 1.9% during yesterday’s trading session. Investors’ sentiments might have been boosted after the company raised its 2025 guidance.

Inside LINC’s Q1 Results

Lincoln reported adjusted earnings per share of 11 cents, which topped the Zacks Consensus Estimate of 4 cents by 175% and rose 83.3% from the year-ago quarter’s level. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Total revenues of $117.5 million surpassed the consensus estimate of $114 million by 3.2% and increased 13.7% from the prior-year quarter.

Student starts (excluding the Transitional segment) grew 20.9% to 4,610 and the quarter-end student population rose 18.3% to 15,904 from the year-ago quarter. The average population was 15,469 compared with 13,311 a year ago.

Selling, general and administrative expense increased 10.6% year over year to $66.9 million, mainly due to costs associated with new programs, new campuses and campus relocations, as well as costs associated with supporting a larger student population.

Adjusted EBITDA was $10.6 million, up 62.5% year over year.

Segment Details of LINC

Campus Operations Segment: The segment’s revenues increased 16% year over year to $117.5 million. Adjusted EBITDA increased 50% to $27.5 million from the prior-year level.

Transitional Segment: The Summerlin campus in Las Vegas was part of this segment last year. The company completed its sale on Jan. 1, 2025. As of March 31, 2025, the company had no campuses under the Transitional segment.

LINC’s Financial Details

As of March 31, 2025, LINC had cash and cash equivalents of $28.7 million compared with $59.3 million as of Dec. 31, 2024.

Cash used in operating activities was $10.3 million in the first quarter of 2025 compared with $14.7 million in the year-ago period.

LINC’s 2025 Guidance Raised

LINC expects revenues between $485 million and $495 million, up from the previous guided range of $480-$490 million. Adjusted EBITDA is now expected to be in the $58-$63 million range, up from $55-$60 million expected earlier. Net income is likely to be within $10-$15 million compared with $8-$13 million anticipated previously. In 2024, the company reported revenues of $440.1 million, adjusted EBITDA of $42.3 million and adjusted net income of $9.9 million.

Student Starts growth is also projected in the 10-14% range, up from 8-12% expected earlier. Capital expenditures are still expected to be between $70 and $75 million.

LINC’s Zacks Rank & Peer Releases

Lincoln currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Adtalem Global Education Inc. (ATGE - Free Report) posted impressive third-quarter fiscal 2025 results, wherein both adjusted earnings and revenues topped the Zacks Consensus Estimate and increased year over year.

The quarter’s performance was driven by robust performance across all the company’s reportable segments, resulting in top-line growth. The segments’ performances were mainly backed by increased enrollment and higher tuition rates. Also, ATGE’s focus on strategic investments to boost student experience bodes well.

Universal Technical Institute, Inc. (UTI - Free Report) reported impressive second-quarter fiscal 2025 results. Both earnings and revenues surpassed the Zacks Consensus Estimate and increased on a year-over-year basis.

The company achieved strong growth in the fiscal second quarter, driven by its strategy, focused on expansion, diversification and optimization. Both divisions saw year-over-year improvements in key financial and operational areas. Higher revenues, an increase in active students and strong new enrollments contributed to the bottom-line growth. Owing to strong performance, Universal Technical has raised its guidance for fiscal 2025 while remaining aligned with long-term growth objectives.

Strategic Education, Inc. (STRA - Free Report) , or SEI, reported impressive results for the first quarter of 2025. Its adjusted earnings and revenues topped the Zacks Consensus Estimate. On a year-over-year basis, both top and bottom lines increased.

Strategic Education’s quarter witnessed robust employer-affiliated enrollment, strong growth from Sophia Learning subscriptions and continued enrollment growth in the U.S. Higher Education (“USHE”) segment. Sophia Learning’s average total subscribers increased approximately 37% from the year-ago period’s level. Employer-affiliated enrollment reached a record high of 31.2% of USHE enrollment, up from 29.2% in the year-ago period.

Published in