ATGE Q1 Earnings Call: Enrollment Growth, Digital Initiatives, and Increased Guidance
Is now the time to buy ATGE? Find out in our full research report (it's free).
Revenue: $466.1 million vs analyst estimates of $446.4 million (12.9% year-on-year growth, 4.4% beat)
Adjusted EPS: $1.92 vs analyst estimates of $1.65 (16.2% beat)
Adjusted EBITDA: $127.8 million vs analyst estimates of $111.2 million (27.4% margin, 14.9% beat)
The company lifted its revenue guidance for the full year to $1.77 billion at the midpoint from $1.75 billion, a 1.3% increase
Management raised its full-year Adjusted EPS guidance to $6.50 at the midpoint, a 4.8% increase
Operating Margin: 20.9%, up from 19.5% in the same quarter last year
Market Capitalization: $4.36 billion
Adtalem's first-quarter results were shaped by significant enrollment growth across its core institutions and continued investment in digital learning tools. CEO Steve Beard highlighted Chamberlain University's expansion of its BSN Online program and Walden University's strong student persistence, both contributing to the company's momentum. Beard pointed to Walden's use of predictive analytics to improve student retention, stating, 'We've increased and enhanced our ability to intervene in the student journey in ways that keep our students pacing through materials in ways that ensure they're successful.' Growth in the Medical and Veterinary segment, though modest, was also noted, with Beard referencing increased inquiry-to-enrollment conversion. Segment performance benefited from strategic initiatives aimed at expanding access and improving academic outcomes.
Looking ahead, management's updated guidance reflects expectations for continued enrollment gains and margin expansion, underpinned by ongoing investments in digital platforms, program capacity, and geographic reach. CFO Bob Phelan explained that the company plans to increase growth investments in the coming quarter to 'set us up well heading into next year,' suggesting a focus on both operational leverage and long-term scalability. Beard indicated that Adtalem is exploring new program launches and potential geographic expansion, stating, 'There are new programs we'd like to bring online... and the vehicles we would use to accomplish bringing on that new capacity are everything from investments in existing programs to acquiring new programs, to standing up new de novo programs.'
Management attributed the quarter's outperformance to broad-based enrollment gains, investments in student-facing digital tools, and ongoing partnerships with healthcare providers.
Enrollment-driven revenue growth: Significant student enrollment increases at Chamberlain University and Walden University were primary drivers, supported by expanded online offerings and high persistence rates.
Digital innovation impact: Walden University's implementation of predictive analytics and digital engagement tools improved student retention and academic outcomes, with Beard noting near-record persistence across large programs.
Healthcare partnerships and specialty focus: Chamberlain's Practice Ready Specialty Focused program, developed with healthcare partners, gave students hands-on exposure to high-demand specialties, which management believes improves job placement and employer satisfaction.
Medical and Veterinary segment stabilization: While enrollment returned to growth in this segment, margins declined due to timing of investments and structural costs; management views this as positioning for future expansion.
Share repurchase and capital allocation: Completion of a $300 million share repurchase and authorization of an additional $150 million program were highlighted, reflecting a focus on returning capital while funding innovation and operational growth.
Adtalem expects that sustained enrollment momentum, enhanced digital tools, and expanded program capacity will drive continued revenue and margin growth in the coming quarters.
Capacity and program expansion: Management plans to invest in expanding existing program capacity and launching new offerings, including geographic expansion and additions in high-demand healthcare fields, to capture unmet market demand.
Innovation in student engagement: Continued deployment of predictive analytics and digital interventions is expected to further improve student retention and success, which management sees as key to profitability and long-term growth.
Regulatory and funding environment: While management does not anticipate near-term funding pressure or regulatory headwinds, ongoing monitoring of legislative and Department of Education developments remains a priority given the sector's sensitivity to policy changes.
In the coming quarters, the StockStory team will monitor (1) the pace and effectiveness of Adtalem's investments in new program capacity and geographic reach, (2) improvements in student retention and academic outcomes driven by digital engagement tools, and (3) stability and recovery of margins in the Medical and Veterinary segment as operational investments mature. Developments in federal education policy or funding will also be important to watch.
Adtalem currently trades at a forward P/E ratio of 17.5×. At this valuation, is it a buy or sell post earnings? Find out in our full research report (it's free).
The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Wire
13 minutes ago
- Business Wire
DEADLINE ALERT: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of CTO Realty Growth
NEW YORK--(BUSINESS WIRE)-- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against CTO Realty Growth, Inc. ('CTO' or the 'Company') (NYSE: CTO) and reminds investors of the October 7, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company. Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) CTO's dividends were less sustainable than Defendants had led investors to believe; (ii) the Company used deceptive and unsustainable practices to artificially inflate its AFFO and overstate the true profitability of its Ashford Lane property; (iii) accordingly, CTO's business and/or financial prospects were overstated; and (iv) as a result, Defendants' public statements were materially false and misleading at all relevant times. On June 25, 2025, Wolfpack Research ("Wolfpack") published a report entitled "CTO: The B. Riley of REITs" (the "Wolfpack Report" or the "Report"), which compared CTO unfavorably to B. Riley, a financial services company that recently lost more than 90% of its value amid three years of losses, soured investments, delayed financial reports and revelations that the SEC had been investigating whether the firm gave shareholders an accurate picture of its health. Citing interviews with former employees and whistleblowers, the Wolfpack Report accused CTO of, among other things, "not generat[ing] enough cash to pay its recurring capex and cover its dividends since converting to a REIT in 2021" and instead "rel[ying] on dilution (increasing shares outstanding by 70% since December 2022) to cover a $38 million dividend shortfall from 2021 to 2024," employing a "manipulative definition of [AFFO] where they exclude recurring capex, unlike all of their self-identified shopping center REIT peers," and "us[ing] a sham loan to hide the collapse of a top tenant from shareholders at Ashford Lane." (Emphasis in original). Further, Wolfpack predicted imminent further dilution of the Company, noting that CTO has just $8.4 million in cash while facing quarterly dividends of $14 million and average recurring capital expenditures of $5.7 million per quarter, along with approximately $12 million in additional planned capital expenditures. On this news, CTO's stock price fell $0.98 per share, or 5.42%, to close at $17.10 per share on June 25, 2025. The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not. Faruqi & Faruqi, LLP also encourages anyone with information regarding CTO's conduct to contact the firm, including whistleblowers, former employees, shareholders and others. To learn more about the CTO Realty Growth class action, go to or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). Follow us for updates on LinkedIn, on X, or on Facebook. Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP ( Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
Yahoo
an hour ago
- Yahoo
5 Stocks Ben Graham Might Buy, If He Were Alive Today
August 11, 2025 -- (Maple Hill Syndicate) I wish I had known Benjamin Graham in person. Graham was a hedge-fund manager, Columbia University professor, mentor to Warren Buffett (Trades, Portfolio), author and bon vivant. He's widely considered the father of the value (bargain-hunting) school of investing. Alas, I didn't know Graham, who was born in 1894 and died in 1976. But he lives on in his books, and in the investment philosophies of dozens of money managers (including me). Once a year in this column, I attempt to guess what stocks Graham would pick if he were alive today. The average return on my Graham recommendations, over 22 years, has been 15.1%. That beats the 12.4% average return for the Standard & Poor's 500 Total Return Index over the same years. Bear in mind that my column results are hypothetical and shouldn't be confused with results I obtain for clients. Also, past performance doesn't predict the future. Graham's Method Graham's stock-selection methods are set out in his books and other writings. For this column, I use a simplified version of his criteria. To qualify as a potential Graham stock, a company must have: Debt no more than 50% of corporate net worth. A stock price that is 12 times earnings or less. A stock price that is less than a company' book value (corporate net worth per share). Today very few stocks meet these stringent criteria. I'd like to draw your attention to five of them. Mosaic The Mosaic Co. (NYSE:MOS), based in Tampa, Florida, makes fertilizer, especially potash fertilizer. Its sales fell 5% in the past year, but have averaged 7% growth over the past decade. The stock is cheap, selling for 11 times earnings and 82% of book value. One reason it's cheap is that a lot of potash is imported from Canada, and Canada is slated to face a 25% tariff under the Trump administration's trade plan. Bank OZK From Little Rock, Arkansas, comes Bank OZK (NASDAQ:OZK), a regional bank with big ambitions. A year ago, I included it among my Graham-inspired choices, and it rose 24.8%. The rise surprised many people, since Bank OZK does a lot of commercial real-estate lending, including construction loans. Ever since Covid-19 drove many people out of office buildings five years ago, commercial real estate has been poison. The loan portfolio's make-up scares me a bit, but I have a lot of faith in the bank's chief executive officer, George Gleason. Meritage Just under book value is Meritage Homes Corp. (NYSE:MTH), a mid-sized homebuilding company with headquarters in Scottsdale, Arizona. It builds homes in ten states, most of them in the sun belt. I like that service territory as the South and West is gaining population. Debt is only 36% of equity at Meritage. That should help the company navigate its way through the current downturn in home sales, which is caused mainly by high mortgage rates. Seadrill Sometimes investors love energy stocks, and sometimes they hate them. Seadrill Ltd. (NYSE:SDRL), which does offshore drilling, is untimely. No one wants to drill under the ocean when oil fetches $60 a barrel. So, Seadrill has lost money in eight of the past ten years. Its stock, down 25% this year, sells for less than it did a decade ago. But if oil hits $80 or $90 a barrel, it would be a different story. I expect that to happen in the next three years, and I like this stock at its current valuation of less than six times recent earnings. Nacco Selling for only 67% of book value is Nacco Industries Inc. (NYSE:NC). Based in Cleveland, Ohio, it's a coal mining company that is barely covered by Wall Street analysts. Nacco has shown a profit in 13 of the past 15 years, and had a good year last year. The stock sells for eight times recent earnings. Last Year The past year has been an unpleasant one for the value approach. So, it's not surprising that my Graham-inspired picks from a year ago trailed the overall market. They rose 6.6% while the Standard & Poor's 500 Total Return Index jumped 21.1%. Two stocks -- Unum Group (NYSE:UNM) and Bank OZK (NASDAQ:OZK) did well, returning 33% and 25% respectively. But G-III Apparel Group Ltd. (NASDAQ:GIII) and HF Sinclair Corp. (NYSE:DINO) had small losses, and Peabody Energy Corp. (NYSE:BTU) shed 22% of its value. In 22 years, my Graham stocks have beaten the index 14 times, and shown a profit 15 times. Disclosure: I own Meritage Homes personally and for most of my clients. John Dorfman is chairman of Dorfman Value Investments LLC in Boston, Massachusetts, and a syndicated columnist. His firm or clients may own or trade securities discussed in this column. He can be reached at jdorfman@ This article first appeared on GuruFocus. Sign in to access your portfolio
Newsweek
an hour ago
- Newsweek
Recession is Still Coming, Warns Reagan Economic Adviser
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The U.S. is on the cusp of a major economic downturn, according to a leading economist who served on Ronald Reagan's Council of Economic Advisers, despite such fears having abated for many. In a recent interview, Steve Hanke, currently a professor of applied economics at Johns Hopkins University, described the contraction in the U.S. money supply—the total amount circulating in the economy—as a "harbinger of things to come." "I think things will continue to show weakness and slow down in the United States and probably end up tipping into a recession later this year," he added. Why It Matters The delayed imposition and inflationary impacts of tariffs, the easing of trade tensions with countries like China, as well as robust GDP growth in the second quarter, has prompted some economists to lower their forecasts of a recession in America's near future. However, Hanke believes that dismissing this possibility is a mistake, and issues that have been simmering beneath the surface of the U.S. economy since the COVID pandemic remain unresolved and could soon trigger significant economic upheaval. What To Know Hanke has been warning of an impending recession since 2022, largely due to the stagnation of money supply in the U.S.. In an article for the Wall Street Journal that year, he attributed this to loose monetary policy by the Federal Reserve to cushion the pandemic's economic impacts. "We will enter a recession either late this year or early next year," Hanke said in August 2024, adding that the total U.S. money supply was then lower than in July 2022, and that the economy was "running on fumes." Stock trader Peter Tuchman "Einstein of Wall Street" works on the floor of the New York Stock Exchange (NYSE) at the opening bell in New York City, on August 11, 2025. Stock trader Peter Tuchman "Einstein of Wall Street" works on the floor of the New York Stock Exchange (NYSE) at the opening bell in New York City, on August 11, 2025. Timothy A. Clary/AFP Overall money supply—which Hanke notes is tied to nominal GDP—has risen since its recent lows, according to Federal Reserve data. However, it is still in line with 2022 levels, and growth remains below Hanke's "Golden" rate of 6 percent. Hanke acknowledged the inaccuracy of his previous forecasts, but said: "I think we eventually will be proven correct because there have only been four significant contractions in the money supply in the United States since the Fed was founded in 1913 and those were all followed by recessions." In a separate interview, Hanke said that Federal Reserve Chair Jerome Powell and President Donald Trump, have been overly focused on interest rates as the make-or-break solution to inflation and wider economic issues. "Monetary policy is not about interest rates, it's about changes in the money supply," he said. "So they're just looking at the wrong gauge." Hanke added that "regime uncertainty," and the unclear outlook for U.S. businesses regarding changes to the trading environment under Trump, was "depressing things further," and causing businesses to hold off on hiring and investment plans. What People Are Saying Economist Steve Hanke in a June interview said: "This is a slow-moving train. Once you get these contractions in the money supply, we will have long and variable lags that ultimately affect economic activity, and that's what's happening. I think the train will arrive in the second half of the year, and things will continue to slow down." What Happens Next? Hanke has forecast an 80 to 90 percent chance of a recession in the near future.
