Graham Holdings Q1 revenue, adjusted EPS climb

Overview

• US diversified conglomerate's Q1 revenue rose 6% yr/yr to $1.24 bln

• Adjusted EPS for Q1 rose to $16.79 from $11.64 yr/yr

• Company recorded $19 mln impairment charge tied to planned Kaplan Languages Group sale

Outlook

• Company did not provide specific guidance for the current quarter or full year

Result Drivers

• DIVISIONAL PERFORMANCE - Revenue growth was led by gains in education, television broadcasting, healthcare, and manufacturing, offset by declines in automotive and other businesses

• OPERATING INCOME MIX - Higher operating income was driven by improved results at television broadcasting, manufacturing and other businesses, partially offset by declines at education, healthcare and automotive

• IMPAIRMENT CHARGE - Company recorded a $19 mln pre-tax impairment charge related to the planned sale of Kaplan Languages Group

Company press release: ID:nBw297F5ka

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "sell"

• The average consensus recommendation for the schools, colleges & universities peer group is "buy."

• Wall Street's median 12-month price target for Graham Holdings Co is $1,040.00, about 9.6% below its April 29 closing price of $1,150.00

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

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