Laureate Education Q2 revenue up 5%, beats estimates

Overview

• Laureate Q2 revenue grows 5% to $524.2 mln, beating analyst expectations

• Net income for Q2 declines due to foreign currency exchange loss

• Adjusted EBITDA for Q2 rises, benefiting from academic calendar timing

Outlook

• Laureate expects 2025 revenues between $1,615 mln and $1,630 mln

• Company sees 2025 Adjusted EBITDA between $489 mln and $496 mln

• Total enrollments for 2025 expected between 491,000 and 495,000

• Laureate anticipates 3%-4% revenue growth on an as-reported basis

Result Drivers

• ACADEMIC CALENDAR - Revenue and Adjusted EBITDA favorably affected by intra-year academic calendar timing, contributing $8 mln and $7 mln respectively

• ENROLLMENT GROWTH - New enrollments increased 7%, with total enrollments up 6%, supporting revenue growth

• FOREIGN EXCHANGE LOSS - Net income impacted by foreign currency exchange loss related to intercompany loan arrangements

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the miscellaneous educational service providers peer group is "buy"

• Wall Street's median 12-month price target for Laureate Education Inc is $26.50, about 13.8% above its July 30 closing price of $22.83

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nGNX5psW9G