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Adtalem (ATGE) Q4 Earnings & Revenues Top Estimates, Up Y/Y
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Adtalem Global Education Inc. (ATGE - Free Report) posted better-than-expected results in fourth-quarter fiscal 2024. Earnings and revenues surpassed their respective Zacks Consensus Estimate and increased year over year, given strong enrollment growth and strategic initiatives.
Shares of this leading education provider fell 2.4% in the after-hours trading session on Aug 6.
The company registered strong quarterly performance, driven by its Growth with Purpose strategy. This success underscores its commitment to excellence and sets the stage for the fiscal 2025, with forward-looking guidance establishing new benchmarks for continued achievement.
Earnings & Revenue Discussion
Adjusted earnings of $1.37 per share topped the consensus mark of $1.24 by 10.5% and increased 33% from $1.03 in the year-ago quarter.
Revenues of $409.9 million beat the consensus mark of $397 million by 3.3% and increased 12.4% year over year. Strong demand at Chamberlain University and Walden University (led by nursing programs) drove results.
Adtalem Global Education Inc. Price, Consensus and EPS Surprise
For the fiscal fourth quarter, enrollment of total students rose 10% year over year to 83,321 students. Our Zacks model predicted a total student enrollment of 80,020 for the reported quarter.
Adjusted operating income increased 14.6% from the prior-year quarter’s level to $80.1 million. Adjusted operating margin expanded 30 basis points (bps) to 19.5%.
Adjusted EBITDA was $97.4 million, up 16.9% from the prior-year quarter’s level. Adjusted EBITDA margin expanded 100 bps to 23.8% year over year. We expected the adjusted EBITDA margin to be 23% for the reported quarter.
Segment Details
Chamberlain: Revenues in the segment were up 15.6% from the year-ago quarter’s level, totaling $167 million. Total student enrollment increased 10.4% to 36,750 students, driven by growth in pre-licensure and post-licensure nursing programs.
Adjusted operating income increased 13.5% from the prior-year quarter’s level to $40.5 million. Adjusted operating margin contracted 50 bps to 24.2%. Adjusted EBITDA was $47.3 million, up 15.1% from the prior-year quarter’s level. Adjusted EBITDA margins contracted 10 bps to 28.3%.
Walden: The segment generated revenues of $156.3 million, up 13.3% year over year. Total student enrollment in the quarter increased 11.3% year over year to 41,845 students, driven by growth in healthcare and non-healthcare programs.
Adjusted operating income came in at $37.4 million, up 16.2% year over year. Adjusted operating margin expanded 60 bps to 23.9%. Adjusted EBITDA was $41.1 million, up 16.6% from the prior-year period’s level. Adjusted EBITDA margins increased 70 bps to 26.3%.
Medical and Veterinary: Revenues in the segment increased 5.4% to $86.6 million from the year-ago quarter’s figure. Total student enrollment fell 2.9% from the prior-year quarter’s level to 4,726 students due to medical programs.
Adjusted operating income increased 10.7% from the prior-year quarter’s figure to $12 million. Adjusted operating margin expanded 60 bps to 13.2%. Adjusted EBITDA was $16.5 million, up 12.3% from the prior-year quarter’s level. Adjusted EBITDA margins increased 120 bps to 19%.
Fiscal 2024 Highlights
For the year, the company generated revenues of $1,584.7 million, up 9.2% year over year. Adjusted earnings of $5.01 were up 19% from $4.21 reported in the fiscal 2023.
Adjusted EBITDA rose 9.9% year over year to $377.5 million. Adjusted EBITDA margins rose just 10 bps year over year to 23.8%.
Liquidity & Cash Flow
As of Jun 30, 2024, Adtalem had cash and cash equivalents of $219.3 million compared with $272.2 million at the end of the fiscal 2023. Long-term debt was $648.7 million, down from $695.1 million at the end of the fiscal 2023. Trailing 12-month net debt to adjusted EBITDA was 1.2x at the fiscal 2024-end.
For the fiscal 2024, cash provided by operating activities (continuing operations) totaled $288.4 million compared with $194.7 million in the year-ago period. Free cash flow in the fiscal 2024 was $239.5 million compared with $168.7 million a year ago.
Fiscal 2025 Guidance
For the fiscal 2025, ATGE expects revenues within $1,660-$1,700 million, up approximately 5% to 7.5% year-over-year. It expects adjusted earnings of $5.60-$5.85 per share, suggesting an increase of approximately 12% to 17% year-over-year.
Carnival Corporation & plc (CCL - Free Report) reported impressive second-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was primarily backed by sustained demand strength and increased booking volumes. The management expects net yields to exceed 10% and drive double-digit returns on invested capital.
The quarter’s passenger ticket revenues amounted to $3.8 billion, up from $3.1 billion reported in the prior-year quarter. CCL reported strong booking momentum for 2025, with record volumes surpassing 2024 levels in price and occupancy. It reported strength in pricing for the North America, Australia and Europe segments for the third and the fourth quarter of 2024 on a year-over-year basis. The company’s efforts to extend the booking curve and leverage favorable pricing trends resulted in record cumulative bookings for the remainder of 2024, with occupancy rates above 2023 levels.
Mattel, Inc. (MAT - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top line missed the consensus estimate for the third straight quarter.
The company experienced robust bottom-line performance, propelled mainly by significant gross margin expansion and growth in adjusted EBITDA. MAT is well positioned for the second half with new product innovation and increased retail support. For 2024, management continues to expect net sales to be comparable with the prior year’s levels at cc. It also anticipates 2024 adjusted EPS to be between $1.35 and $1.45 compared with $1.23 in 2023.
American Outdoor Brands, Inc. (AOUT - Free Report) reported mixed fourth-quarter fiscal 2024 (ended Apr 30, 2024) results. It reported breakeven earnings, which missed the Zacks Consensus Estimate, while net sales topped the same. The top line rose year over year but the bottom line declined.
The quarterly results reflected growth in its outdoor lifestyle and shooting sports categories on the back of new product launches across its several brands. The footprint expansion in Canada also bodes well for the company, allowing it to offer outdoor brands to the consumers of Canada. The bottom line was negatively impacted by the amortization of tariff and freight costs, higher promotional product discounts and an immaterial adjustment to a tariff drawback claim submitted in the fiscal 2022.
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Adtalem (ATGE) Q4 Earnings & Revenues Top Estimates, Up Y/Y
Adtalem Global Education Inc. (ATGE - Free Report) posted better-than-expected results in fourth-quarter fiscal 2024. Earnings and revenues surpassed their respective Zacks Consensus Estimate and increased year over year, given strong enrollment growth and strategic initiatives.
Shares of this leading education provider fell 2.4% in the after-hours trading session on Aug 6.
The company registered strong quarterly performance, driven by its Growth with Purpose strategy. This success underscores its commitment to excellence and sets the stage for the fiscal 2025, with forward-looking guidance establishing new benchmarks for continued achievement.
Earnings & Revenue Discussion
Adjusted earnings of $1.37 per share topped the consensus mark of $1.24 by 10.5% and increased 33% from $1.03 in the year-ago quarter.
Revenues of $409.9 million beat the consensus mark of $397 million by 3.3% and increased 12.4% year over year. Strong demand at Chamberlain University and Walden University (led by nursing programs) drove results.
Adtalem Global Education Inc. Price, Consensus and EPS Surprise
Adtalem Global Education Inc. price-consensus-eps-surprise-chart | Adtalem Global Education Inc. Quote
For the fiscal fourth quarter, enrollment of total students rose 10% year over year to 83,321 students. Our Zacks model predicted a total student enrollment of 80,020 for the reported quarter.
Adjusted operating income increased 14.6% from the prior-year quarter’s level to $80.1 million. Adjusted operating margin expanded 30 basis points (bps) to 19.5%.
Adjusted EBITDA was $97.4 million, up 16.9% from the prior-year quarter’s level. Adjusted EBITDA margin expanded 100 bps to 23.8% year over year. We expected the adjusted EBITDA margin to be 23% for the reported quarter.
Segment Details
Chamberlain: Revenues in the segment were up 15.6% from the year-ago quarter’s level, totaling $167 million. Total student enrollment increased 10.4% to 36,750 students, driven by growth in pre-licensure and post-licensure nursing programs.
Adjusted operating income increased 13.5% from the prior-year quarter’s level to $40.5 million. Adjusted operating margin contracted 50 bps to 24.2%. Adjusted EBITDA was $47.3 million, up 15.1% from the prior-year quarter’s level. Adjusted EBITDA margins contracted 10 bps to 28.3%.
Walden: The segment generated revenues of $156.3 million, up 13.3% year over year. Total student enrollment in the quarter increased 11.3% year over year to 41,845 students, driven by growth in healthcare and non-healthcare programs.
Adjusted operating income came in at $37.4 million, up 16.2% year over year. Adjusted operating margin expanded 60 bps to 23.9%. Adjusted EBITDA was $41.1 million, up 16.6% from the prior-year period’s level. Adjusted EBITDA margins increased 70 bps to 26.3%.
Medical and Veterinary: Revenues in the segment increased 5.4% to $86.6 million from the year-ago quarter’s figure. Total student enrollment fell 2.9% from the prior-year quarter’s level to 4,726 students due to medical programs.
Adjusted operating income increased 10.7% from the prior-year quarter’s figure to $12 million. Adjusted operating margin expanded 60 bps to 13.2%. Adjusted EBITDA was $16.5 million, up 12.3% from the prior-year quarter’s level. Adjusted EBITDA margins increased 120 bps to 19%.
Fiscal 2024 Highlights
For the year, the company generated revenues of $1,584.7 million, up 9.2% year over year. Adjusted earnings of $5.01 were up 19% from $4.21 reported in the fiscal 2023.
Adjusted EBITDA rose 9.9% year over year to $377.5 million. Adjusted EBITDA margins rose just 10 bps year over year to 23.8%.
Liquidity & Cash Flow
As of Jun 30, 2024, Adtalem had cash and cash equivalents of $219.3 million compared with $272.2 million at the end of the fiscal 2023. Long-term debt was $648.7 million, down from $695.1 million at the end of the fiscal 2023. Trailing 12-month net debt to adjusted EBITDA was 1.2x at the fiscal 2024-end.
For the fiscal 2024, cash provided by operating activities (continuing operations) totaled $288.4 million compared with $194.7 million in the year-ago period. Free cash flow in the fiscal 2024 was $239.5 million compared with $168.7 million a year ago.
Fiscal 2025 Guidance
For the fiscal 2025, ATGE expects revenues within $1,660-$1,700 million, up approximately 5% to 7.5% year-over-year. It expects adjusted earnings of $5.60-$5.85 per share, suggesting an increase of approximately 12% to 17% year-over-year.
Zacks Rank & Recent Consumer Discretionary Releases
Adtalem currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Carnival Corporation & plc (CCL - Free Report) reported impressive second-quarter fiscal 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside was primarily backed by sustained demand strength and increased booking volumes. The management expects net yields to exceed 10% and drive double-digit returns on invested capital.
The quarter’s passenger ticket revenues amounted to $3.8 billion, up from $3.1 billion reported in the prior-year quarter. CCL reported strong booking momentum for 2025, with record volumes surpassing 2024 levels in price and occupancy. It reported strength in pricing for the North America, Australia and Europe segments for the third and the fourth quarter of 2024 on a year-over-year basis. The company’s efforts to extend the booking curve and leverage favorable pricing trends resulted in record cumulative bookings for the remainder of 2024, with occupancy rates above 2023 levels.
Mattel, Inc. (MAT - Free Report) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top line missed the consensus estimate for the third straight quarter.
The company experienced robust bottom-line performance, propelled mainly by significant gross margin expansion and growth in adjusted EBITDA. MAT is well positioned for the second half with new product innovation and increased retail support. For 2024, management continues to expect net sales to be comparable with the prior year’s levels at cc. It also anticipates 2024 adjusted EPS to be between $1.35 and $1.45 compared with $1.23 in 2023.
American Outdoor Brands, Inc. (AOUT - Free Report) reported mixed fourth-quarter fiscal 2024 (ended Apr 30, 2024) results. It reported breakeven earnings, which missed the Zacks Consensus Estimate, while net sales topped the same. The top line rose year over year but the bottom line declined.
The quarterly results reflected growth in its outdoor lifestyle and shooting sports categories on the back of new product launches across its several brands. The footprint expansion in Canada also bodes well for the company, allowing it to offer outdoor brands to the consumers of Canada. The bottom line was negatively impacted by the amortization of tariff and freight costs, higher promotional product discounts and an immaterial adjustment to a tariff drawback claim submitted in the fiscal 2022.