As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the education services industry, including Lincoln Educational (NASDAQ:LINC) and its peers.
A whole industry has emerged to address the problem of rising education costs, offering consumers alternatives to traditional education paths such as four-year colleges. These alternative paths, which may include online courses or flexible schedules, make education more accessible to those with work or child-rearing obligations. However, some have run into issues around the value of the degrees and certifications they provide and whether customers are getting a good deal. Those who don’t prove their value could struggle to retain students, or even worse, invite the heavy hand of regulation.
The 8 education services stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 3.7% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.5% since the latest earnings results.
Established in 1946, Lincoln Educational (NASDAQ:LINC) is a provider of specialized technical training in the United States, offering career-oriented programs to provide practical skills required in the workforce.
Lincoln Educational reported revenues of $119.4 million, up 16.4% year on year. This print exceeded analysts’ expectations by 6.9%. Overall, it was a very strong quarter for the company with full-year EBITDA guidance exceeding analysts’ expectations.
“We had a very strong finish to 2024, achieving or exceeding all of our guidance metrics while we continued to invest in our growth strategies,” said Scott Shaw, President & CEO.
Lincoln Educational scored the highest full-year guidance raise of the whole group. The stock is up 3.4% since reporting and currently trades at $16.63.
Is now the time to buy Lincoln Educational? Access our full analysis of the earnings results here, it’s free.
Formerly known as DeVry Education Group, Adtalem Global Education (NYSE:ATGE) is a global provider of workforce solutions and educational services.
Adtalem reported revenues of $447.7 million, up 13.9% year on year, outperforming analysts’ expectations by 4.7%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 7.5% since reporting. It currently trades at $94.77.
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