We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Adtalem (ATGE) Q3 Earnings Beat Estimates, Enrollment Up Y/Y
Read MoreHide Full Article
Adtalem Global Education Inc. (ATGE - Free Report) reported impressive earnings in third-quarter fiscal 2020. Its earnings not only topped the Zacks Consensus Estimate but also grew strongly on a year-over-year basis backed by new student enrollments, employer partnerships and prudent cost management across the business.
Shares of the company grew 1.4% in the after-hour trading session on May 5, post the earnings release.
As the near-term financial impact of the COVID-19 pandemic is uncertain, it withdrew its previously issued guidance for fiscal 2020.
In the quarter under review, adjusted earnings came in at 81 cents per share, which topped the consensus mark of 67 cents by 20.9%. Earnings also grew 26.6% year over year on the back of solid enrollments and cost-saving initiatives.
Adtalem Global Education Inc. Price, Consensus and EPS Surprise
Adtalem reported revenues of $271.5 million, which lagged the consensus mark of $272.4 million by 0.3% but increased 4.9% year over year. During the fiscal third quarter, enrollment of new and total students grew 11.3% and 4.6% year over year, respectively.
Adjusted operating income from continuing operations of $56.3 million increased 18% year over year.
Segment Details
Medical and Healthcare: Revenues in the segment rose 1.7% from the year-ago figure to $227.3 million. Chamberlain University’s revenues increased 2.7% year over year.
In Chamberlain, revenues grew 5.4% year over year. New and total student enrollment increased 11.2% and 4.6% year over year in the January session, respectively. In the March session, the metrics rose 12.7% and 5.1%, respectively.
Medical and Veterinary schools’ revenues fell 3.3% year over year, mostly due to COVID-19-led reduced clinical weeks in March. Enrollment of new and total students grew 3.2% and 1.7% year over year, respectively, in January.
Adjusted operating income in the segment was $57.6 million, up 8.7% from the prior-year level. The upside was backed by strong enrollment for Chamberlain and reduced travel and discretionary spend, partially offset by corporate costs related to its former Business and Law segment.
Financial Services: Revenues in the segment totaled $44.1 million, up 22.8% year over year. Revenues at Becker decreased 5.3% year over year. OnCourse Learning contributed 19.3% to total revenues. However, revenues were somewhat impacted by the sale of Becker’s healthcare assets. Operating income declined 17.6% from the prior-year quarter to $4.2 million due to corporate costs.
Liquidity & Cash Flow
As of Mar 31, 2020, Adtalem had cash and cash equivalents of $167.8 million compared with $230.7 million in the corresponding year-ago period and $204.2 million at fiscal 2019-end. In the first nine months of fiscal 2020, cash provided by operating activities totaled $105.5 million compared with $128.5 million of cash provided by operating activities in the comparable year-ago period.
During the fiscal third quarter, Adtalem repurchased 1.2 million shares of common stock at an average purchase price of $31.67 for a total of $36.9 million.
Strategic Education, Inc. or SEI (STRA - Free Report) reported stellar results in first-quarter 2020, wherein earnings and revenues not only topped analysts’ expectations but also grew from the year-ago level. The uptick was mainly backed by strong top-line numbers, and margins in Strayer and Capella universities.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
Adtalem (ATGE) Q3 Earnings Beat Estimates, Enrollment Up Y/Y
Adtalem Global Education Inc. (ATGE - Free Report) reported impressive earnings in third-quarter fiscal 2020. Its earnings not only topped the Zacks Consensus Estimate but also grew strongly on a year-over-year basis backed by new student enrollments, employer partnerships and prudent cost management across the business.
Shares of the company grew 1.4% in the after-hour trading session on May 5, post the earnings release.
As the near-term financial impact of the COVID-19 pandemic is uncertain, it withdrew its previously issued guidance for fiscal 2020.
In the quarter under review, adjusted earnings came in at 81 cents per share, which topped the consensus mark of 67 cents by 20.9%. Earnings also grew 26.6% year over year on the back of solid enrollments and cost-saving initiatives.
Adtalem Global Education Inc. Price, Consensus and EPS Surprise
Adtalem Global Education Inc. price-consensus-eps-surprise-chart | Adtalem Global Education Inc. Quote
Revenues & Operating Discussion
Adtalem reported revenues of $271.5 million, which lagged the consensus mark of $272.4 million by 0.3% but increased 4.9% year over year. During the fiscal third quarter, enrollment of new and total students grew 11.3% and 4.6% year over year, respectively.
Adjusted operating income from continuing operations of $56.3 million increased 18% year over year.
Segment Details
Medical and Healthcare: Revenues in the segment rose 1.7% from the year-ago figure to $227.3 million. Chamberlain University’s revenues increased 2.7% year over year.
In Chamberlain, revenues grew 5.4% year over year. New and total student enrollment increased 11.2% and 4.6% year over year in the January session, respectively. In the March session, the metrics rose 12.7% and 5.1%, respectively.
Medical and Veterinary schools’ revenues fell 3.3% year over year, mostly due to COVID-19-led reduced clinical weeks in March. Enrollment of new and total students grew 3.2% and 1.7% year over year, respectively, in January.
Adjusted operating income in the segment was $57.6 million, up 8.7% from the prior-year level. The upside was backed by strong enrollment for Chamberlain and reduced travel and discretionary spend, partially offset by corporate costs related to its former Business and Law segment.
Financial Services: Revenues in the segment totaled $44.1 million, up 22.8% year over year. Revenues at Becker decreased 5.3% year over year. OnCourse Learning contributed 19.3% to total revenues. However, revenues were somewhat impacted by the sale of Becker’s healthcare assets. Operating income declined 17.6% from the prior-year quarter to $4.2 million due to corporate costs.
Liquidity & Cash Flow
As of Mar 31, 2020, Adtalem had cash and cash equivalents of $167.8 million compared with $230.7 million in the corresponding year-ago period and $204.2 million at fiscal 2019-end. In the first nine months of fiscal 2020, cash provided by operating activities totaled $105.5 million compared with $128.5 million of cash provided by operating activities in the comparable year-ago period.
During the fiscal third quarter, Adtalem repurchased 1.2 million shares of common stock at an average purchase price of $31.67 for a total of $36.9 million.
Zacks Rank & Peer Release
Adtalem — which shares space with American Public Education, Inc. (APEI - Free Report) and Laureate Education, Inc. (LAUR - Free Report) in the Zacks Schools industry — currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Strategic Education, Inc. or SEI (STRA - Free Report) reported stellar results in first-quarter 2020, wherein earnings and revenues not only topped analysts’ expectations but also grew from the year-ago level. The uptick was mainly backed by strong top-line numbers, and margins in Strayer and Capella universities.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>