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Adtalem's ACAMS Partners With Finva for Nordic Countries

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The Association of Certified Anti-Money Laundering specialists (“ACAMS”), a member of Adtalem Global Education (ATGE - Free Report) , announced a strategic training initiative with the Financial and Insurance Institute (“Finva”).

The partnership will help anti-financial crime professionals in Nordic countries to prepare for the CAMS qualification. CAMS is a global leader in anti-money laundering certifications, recognized internationally by financial institutions, governments and regulators.

Finva, part of Aalto University Executive Education Group, provides training services to insurance, banking, finance and investments sector.

Initiatives to Drive Growth

Adtalem laid out various initiatives to ensure a balanced focus on investment initiatives for delivering direct returns to its shareholders. The company emphasizes on associating with corporations, hospitals, government agencies and professional organizations for designing educational programs aimed at teaching new skills to employees.

Moreover, tie-ups with different organizations will allow Adtalem to reduce its exposure to Title IV funding. The company will continue to leverage organizational synergies and expand efficiency initiatives across the enterprise. Meanwhile, it has also been undertaking initiatives for achieving strong multi-year organic growth.

ACAMS continues to post strong growth in the Professional Education segment, as it continues to attract new members and build scale across its membership, certification and conference revenue stream.

In the fourth quarter of 2018, Professional Education segment’s revenues increased 13.6% year over year, primarily driven by revenue growth at ACAMS along with better performance at Becker Professional Education. Also, adjusted operating income grew 17.3% from the prior-year period.

Notably, Adtalem’s total revenues in fiscal 2018 were up 1.9% from a year ago. The company expects total revenues to grow 3-4% for fiscal 2019.

Additionally, Adtalem is adopting a strict cost-control routine, with special emphasis on controlling the escalating costs at some of its institutions. The company’s adjusted operating costs and expenses decreased 1% in fiscal 2018.

Price Performance

Shares of Adtalem have outperformed the industry so far this year. Its shares have gained 5.8% against the industry’s decline of 13.9% in the said period. Currently, Adtalem carries a Zacks Rank #5 (Strong Sell). Strong segmental performance and multi-year organic growth initiatives will drive the stock going forward.

Key Picks

Some better-ranked stocks in the School industry are Strategic Education, Inc. (STRA - Free Report) , Bridgepoint Education, Inc. (BPI - Free Report) and Cambium Learning Group, Inc. (ABCD - Free Report) . While Strategic Education and Bridgepoint sport a Zacks Rank #1 (Strong Buy), Cambium Learning Group carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Strategic Education’s earnings per share are expected to increase 46% in 2018.

Bridgepoint has an expected earnings growth rate of 8.5% for 2018.

Cambium Learning Group is expected to register an EPS growth rate of 30.8% next year.

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