Vocational education company Adtalem Global Education (NYSE: ATGE) will be reporting earnings this Wednesday after market hours. Here’s what to look for.
Adtalem beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $462.3 million, up 10.8% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but full-year revenue guidance meeting analysts’ expectations.
Is Adtalem a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Adtalem’s revenue to grow 9.6% year on year to $490.6 million, slowing from the 13.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.19 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Adtalem has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.3% on average.
Looking at Adtalem’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Nike posted flat year-on-year revenue, beating analysts’ expectations by 1.7%, and Carnival reported revenues up 6.6%, falling short of estimates by 0.6%. Nike traded down 10.5% following the results while Carnival was up 13.6%.
Read our full analysis of Nike’s results here and Carnival’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. Adtalem is up 13.1% during the same time and is heading into earnings with an average analyst price target of $158.25 (compared to the current share price of $118.75).
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