Latest news with #ATGE
Yahoo
4 days ago
- Business
- Yahoo
Adtalem (NYSE:ATGE) Beats Expectations in Strong Q2, Full-Year Sales Guidance is Optimistic
Vocational education company Adtalem Global Education (NYSE:ATGE) reported Q2 CY2025 results topping the market's revenue expectations , with sales up 11.5% year on year to $457.1 million. The company's full-year revenue guidance of $1.92 billion at the midpoint came in 1.8% above analysts' estimates. Its non-GAAP profit of $1.66 per share was 8.3% above analysts' consensus estimates. Is now the time to buy Adtalem? Find out in our full research report. Adtalem (ATGE) Q2 CY2025 Highlights: Revenue: $457.1 million vs analyst estimates of $439.6 million (11.5% year-on-year growth, 4% beat) Adjusted EPS: $1.66 vs analyst estimates of $1.53 (8.3% beat) Adjusted EBITDA: $110.2 million vs analyst estimates of $104.7 million (24.1% margin, 5.3% beat) Adjusted EPS guidance for the upcoming financial year 2026 is $7.75 at the midpoint, beating analyst estimates by 3.9% Operating Margin: 16.8%, in line with the same quarter last year Market Capitalization: $4.28 billion Company Overview Formerly known as DeVry Education Group, Adtalem Global Education (NYSE:ATGE) is a global provider of workforce solutions and educational services. Revenue Growth A company's long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Adtalem grew its sales at a 11.2% annual rate. Although this growth is acceptable on an absolute basis, it fell short of our standards for the consumer discretionary sector, which enjoys a number of secular tailwinds. Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Adtalem's annualized revenue growth of 11% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak. This quarter, Adtalem reported year-on-year revenue growth of 11.5%, and its $457.1 million of revenue exceeded Wall Street's estimates by 4%. Looking ahead, sell-side analysts expect revenue to grow 5.4% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and suggests its products and services will face some demand challenges. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating Margin Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Adtalem's operating margin has risen over the last 12 months and averaged 18.3% over the last two years. On top of that, its profitability was top-notch for a consumer discretionary business, showing it's an well-run company with an efficient cost structure. In Q2, Adtalem generated an operating margin profit margin of 16.8%, in line with the same quarter last year. This indicates the company's overall cost structure has been relatively stable. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Adtalem's EPS grew at a spectacular 23.8% compounded annual growth rate over the last five years, higher than its 11.2% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. In Q2, Adtalem reported adjusted EPS at $1.66, up from $1.37 in the same quarter last year. This print beat analysts' estimates by 8.3%. Over the next 12 months, Wall Street expects Adtalem's full-year EPS of $6.68 to grow 11.5%. Key Takeaways from Adtalem's Q2 Results It was great to see Adtalem's full-year revenue guidance top analysts' expectations. We were also happy its revenue outperformed Wall Street's estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock traded up 2.3% to $122 immediately after reporting. Adtalem put up rock-solid earnings, but one quarter doesn't necessarily make the stock a buy. Let's see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-08-2025
- Business
- Yahoo
Down 7.1% in 4 Weeks, Here's Why Adtalem (ATGE) Looks Ripe for a Turnaround
Adtalem Global Education (ATGE) has been beaten down lately with too much selling pressure. While the stock has lost 7.1% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier. We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements. RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30. Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal. So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound. However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision. Why a Trend Reversal is Due for ATGE The heavy selling of ATGE shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 29.62. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand. The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for ATGE has increased 0%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term. Moreover, ATGE currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Adtalem Global Education Inc. (ATGE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
21-07-2025
- Business
- Yahoo
Adtalem Global Education (ATGE) Surged on Student Enrollment Growth and Raise in Guidance
Ariel Investments, an investment management company, released its 'Ariel Fund' second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter was a volatile period. Stocks fell sharply in early April following the 'Liberation Day' tariff announcement, pushing the market close to bear market territory. Later, the pause in plans led to a strong recovery. Excitement for artificial intelligence (AI) stocks reignited, with positive economic data and strong corporate earnings driving U.S. indices to new all-time highs. Growth stocks outperformed value stocks, and large caps continued to outperform their small-cap counterparts. Against this backdrop, Ariel Fund returned 6.96% in the quarter, lagging behind both the Russell 2500 Value Index's +7.29% return and exceeding the Russell 2000 Value Index's +4.97% gain. For more information on the fund's top picks in 2025, please check its top five holdings. In its second quarter 2025 investor letter, Ariel Fund highlighted stocks such as Adtalem Global Education Inc. (NYSE:ATGE). Adtalem Global Education Inc. (NYSE:ATGE) offers workforce solutions that operate through Chamberlain, Walden, and Medical and Veterinary segments. The one-month return of Adtalem Global Education Inc. (NYSE:ATGE) was -8.55%, and its shares gained 49.57% of their value over the last 52 weeks. On July 18, 2025, Adtalem Global Education Inc. (NYSE:ATGE) stock closed at $117.08 per share, with a market capitalization of $4.206 billion. Ariel Fund stated the following regarding Adtalem Global Education Inc. (NYSE:ATGE) in its second quarter 2025 investor letter: "Shares of global leader in for-profit education, Adtalem Global Education Inc. (NYSE:ATGE), also jumped following a top- and bottom-line quarterly earnings beat driven by accelerating new student enrollment growth and a subsequent raise to fiscal year 2025 guidance. Revenue per student and margins at Chamberlain and Walden also came in significantly better than expected. Meanwhile, we remain encouraged by management's solid execution of remediation initiatives at the medical and veterinary schools, where revenue growth outperformed and total enrollment trends are improving. Although regulatory uncertainty within the U.S education landscape remains, we view ATGE as well insulated, if not a beneficiary of potentially less onerous government scrutiny. Longer term, we believe ATGE's strong fundamentals, quality programs, free cash flow generation and sturdy balance sheet are attractive. As the number one grantor of nursing degrees in the U.S. and the largest producer of African American MDs, PhDs and nurses in the country, we remain confident ATGE will benefit from the healthcare worker shortage in the U.S." A group of students in a lecture hall, with a professor lecturing to them in the forefront. Adtalem Global Education Inc. (NYSE:ATGE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Adtalem Global Education Inc. (NYSE:ATGE) at the end of the first quarter, compared to 32 in the previous quarter. Adtalem Global Education Inc.'s (NYSE:ATGE) fiscal third quarter revenue increased 13% to $466 million. While we acknowledge the potential of Adtalem Global Education Inc. (NYSE:ATGE) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Adtalem Global Education Inc. (NYSE:ATGE) and shared Ariel Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Business
- Yahoo
Is ADTALEM GBL EDU (ATGE) Stock Outpacing Its Consumer Discretionary Peers This Year?
Investors interested in Consumer Discretionary stocks should always be looking to find the best-performing companies in the group. Adtalem Global Education (ATGE) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Consumer Discretionary peers, we might be able to answer that question. Adtalem Global Education is one of 255 individual stocks in the Consumer Discretionary sector. Collectively, these companies sit at #12 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst. The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Adtalem Global Education is currently sporting a Zacks Rank of #2 (Buy). Over the past three months, the Zacks Consensus Estimate for ATGE's full-year earnings has moved 5.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving. Our latest available data shows that ATGE has returned about 32% since the start of the calendar year. At the same time, Consumer Discretionary stocks have gained an average of 5.8%. As we can see, Adtalem Global Education is performing better than its sector in the calendar year. Another Consumer Discretionary stock, which has outperformed the sector so far this year, is Fox (FOXA). The stock has returned 10.8% year-to-date. The consensus estimate for Fox's current year EPS has increased 3% over the past three months. The stock currently has a Zacks Rank #2 (Buy). Breaking things down more, Adtalem Global Education is a member of the Schools industry, which includes 17 individual companies and currently sits at #17 in the Zacks Industry Rank. On average, stocks in this group have gained 6% this year, meaning that ATGE is performing better in terms of year-to-date returns. In contrast, Fox falls under the Broadcast Radio and Television industry. Currently, this industry has 19 stocks and is ranked #78. Since the beginning of the year, the industry has moved +25.5%. Investors interested in the Consumer Discretionary sector may want to keep a close eye on Adtalem Global Education and Fox as they attempt to continue their solid performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Adtalem Global Education Inc. (ATGE) : Free Stock Analysis Report Fox Corporation (FOXA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
10-06-2025
- Business
- Yahoo
ATGE Q1 Earnings Call: Enrollment Growth, Digital Initiatives, and Increased Guidance
Vocational education company Adtalem Global Education (NYSE:ATGE) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 12.9% year on year to $466.1 million. The company's full-year revenue guidance of $1.77 billion at the midpoint came in 0.9% above analysts' estimates. Its non-GAAP profit of $1.92 per share was 16.2% above analysts' consensus estimates. 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.
