Latest news with #BFAM
Yahoo
01-08-2025
- Business
- Yahoo
Here's What Key Metrics Tell Us About Bright Horizons (BFAM) Q2 Earnings
Bright Horizons Family Solutions (BFAM) reported $731.57 million in revenue for the quarter ended June 2025, representing a year-over-year increase of 9.2%. EPS of $1.07 for the same period compares to $0.88 a year ago. The reported revenue represents a surprise of +1.08% over the Zacks Consensus Estimate of $723.73 million. With the consensus EPS estimate being $1.00, the EPS surprise was +7%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Bright Horizons performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue- Back-up care: $162.67 million compared to the $155.94 million average estimate based on two analysts. The reported number represents a change of +19.2% year over year. Revenue- Full service center-based child care: $540.27 million versus $540.39 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +6.6% change. Revenue- Educational advisory and other services: $28.63 million versus the two-analyst average estimate of $27.59 million. The reported number represents a year-over-year change of +8.1%. Adjusted income from operations- Full service center-based child care: $40.28 million compared to the $36.85 million average estimate based on two analysts. Adjusted income from operations- Educational advisory and other services: $4.85 million versus the two-analyst average estimate of $3.89 million. Adjusted income from operations- Back-up care: $40.92 million versus the two-analyst average estimate of $37.62 million. View all Key Company Metrics for Bright Horizons here>>> Shares of Bright Horizons have returned -6.1% over the past month versus the Zacks S&P 500 composite's +2.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. 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 Bright Horizons Family Solutions Inc. (BFAM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
01-08-2025
- Business
- Yahoo
Bright Horizons (NYSE:BFAM) Posts Better-Than-Expected Sales In Q2, Full-Year Outlook Slightly Exceeds Expectations
Child care and education company Bright Horizons (NYSE:BFAM) reported Q2 CY2025 results topping the market's revenue expectations , with sales up 9.2% year on year to $731.6 million. The company's full-year revenue guidance of $2.91 billion at the midpoint came in 0.8% above analysts' estimates. Its non-GAAP profit of $1.07 per share was 5.8% above analysts' consensus estimates. Is now the time to buy Bright Horizons? Find out in our full research report. Bright Horizons (BFAM) Q2 CY2025 Highlights: Revenue: $731.6 million vs analyst estimates of $723.8 million (9.2% year-on-year growth, 1.1% beat) Adjusted EPS: $1.07 vs analyst estimates of $1.01 (5.8% beat) Adjusted EBITDA: $115.6 million vs analyst estimates of $112.7 million (15.8% margin, 2.6% beat) The company slightly lifted its revenue guidance for the full year to $2.91 billion at the midpoint from $2.89 billion Management raised its full-year Adjusted EPS guidance to $4.20 at the midpoint, a 3.7% increase Operating Margin: 11.8%, up from 10.3% in the same quarter last year Free Cash Flow Margin: 15.8%, up from 13% in the same quarter last year Market Capitalization: $6.48 billion Company Overview Founded in 1986, Bright Horizons (NYSE:BFAM) is a global provider of child care, early education, and workforce support solutions. Revenue Growth A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Regrettably, Bright Horizons's sales grew at a sluggish 8.8% compounded annual growth rate over the last five years. This fell short of our benchmark for the consumer discretionary sector and is a poor baseline for our analysis. 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. Bright Horizons's annualized revenue growth of 11.9% over the last two years is above its five-year trend, but we were still disappointed by the results. This quarter, Bright Horizons reported year-on-year revenue growth of 9.2%, and its $731.6 million of revenue exceeded Wall Street's estimates by 1.1%. Looking ahead, sell-side analysts expect revenue to grow 6.8% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and suggests its products and services will see some demand headwinds. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating Margin Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Bright Horizons's operating margin has been trending up over the last 12 months and averaged 9.2% over the last two years. The company's higher efficiency is a breath of fresh air, but its suboptimal cost structure means it still sports mediocre profitability for a consumer discretionary business. This quarter, Bright Horizons generated an operating margin profit margin of 11.8%, up 1.5 percentage points year on year. This increase was a welcome development and shows it was more efficient. 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. Bright Horizons's EPS grew at an unimpressive 5.2% compounded annual growth rate over the last five years, lower than its 8.8% annualized revenue growth. We can see the difference stemmed from higher interest expenses or taxes as the company actually improved its operating margin and repurchased its shares during this time. In Q2, Bright Horizons reported adjusted EPS at $1.07, up from $0.88 in the same quarter last year. This print beat analysts' estimates by 5.8%. Over the next 12 months, Wall Street expects Bright Horizons's full-year EPS of $3.93 to grow 10.6%. Key Takeaways from Bright Horizons's Q2 Results It was good to see Bright Horizons raise its full-year revenue and EPS guidance. We were also glad this quarter's revenue, EPS, and EBITDA exceeded Wall Street's estimates. Overall, this print had some key positives. The stock remained flat at $113.10 immediately after reporting. Should you buy the stock or not? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
02-07-2025
- Business
- Yahoo
Reflecting On Education Services Stocks' Q1 Earnings: Bright Horizons (NYSE:BFAM)
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let's have a look at Bright Horizons (NYSE:BFAM) and its peers. A whole industry has emerged to address the problem of rising education costs, offering consumers alternatives to traditional education paths such as four-year colleges. These alternative paths, which may include online courses or flexible schedules, make education more accessible to those with work or child-rearing obligations. However, some have run into issues around the value of the degrees and certifications they provide and whether customers are getting a good deal. Those who don't prove their value could struggle to retain students, or even worse, invite the heavy hand of regulation. The 8 education services stocks we track reported a very strong Q1. As a group, revenues beat analysts' consensus estimates by 2.3% while next quarter's revenue guidance was in line. Thankfully, share prices of the companies have been resilient as they are up 9.4% on average since the latest earnings results. Founded in 1986, Bright Horizons (NYSE:BFAM) is a global provider of child care, early education, and workforce support solutions. Bright Horizons reported revenues of $665.5 million, up 6.9% year on year. This print was in line with analysts' expectations, and overall, it was a strong quarter for the company with a solid beat of analysts' adjusted operating income estimates and an impressive beat of analysts' EPS estimates. 'We are pleased with our solid start to the year,' said Stephen Kramer, Chief Executive Officer. Bright Horizons delivered the weakest performance against analyst estimates of the whole group. The stock is down 4.1% since reporting and currently trades at $121.50. Is now the time to buy Bright Horizons? Access our full analysis of the earnings results here, it's free. Formed through the merger of Strayer Education and Capella Education in 2018, Strategic Education (NASDAQ:STRA) is a career-focused higher education provider. Strategic Education reported revenues of $303.6 million, up 4.6% year on year, outperforming analysts' expectations by 1%. The business had an exceptional quarter with a solid beat of analysts' EPS estimates and an impressive beat of analysts' adjusted operating income estimates. The market seems happy with the results as the stock is up 7.3% since reporting. It currently trades at $86.09. Is now the time to buy Strategic Education? Access our full analysis of the earnings results here, it's free. Founded in 1949, Grand Canyon Education (NASDAQ:LOPE) is an educational services provider known for its operation at Grand Canyon University. Grand Canyon Education reported revenues of $289.3 million, up 5.3% year on year, exceeding analysts' expectations by 0.8%. It was a satisfactory quarter as it also posted EPS guidance for next quarter exceeding analysts' expectations but a miss of analysts' students estimates. Interestingly, the stock is up 1.8% since the results and currently trades at $188.73. Read our full analysis of Grand Canyon Education's results here. Formerly known as Career Education Corporation, Perdoceo Education (NASDAQ:PRDO) is an educational services company that specializes in postsecondary education. Perdoceo Education reported revenues of $213 million, up 26.6% year on year. This number surpassed analysts' expectations by 2.4%. Overall, it was a strong quarter as it also logged EPS guidance for next quarter exceeding analysts' expectations. Perdoceo Education pulled off the fastest revenue growth among its peers. The stock is up 26.6% since reporting and currently trades at $31.86. Read our full, actionable report on Perdoceo Education here, it's free. Formerly known as DeVry Education Group, Adtalem Global Education (NYSE:ATGE) is a global provider of workforce solutions and educational services. Adtalem reported revenues of $466.1 million, up 12.9% year on year. This print beat analysts' expectations by 4.4%. It was a very strong quarter as it also recorded an impressive beat of analysts' EBITDA estimates. The stock is up 7.1% since reporting and currently trades at $124.40. Read our full, actionable report on Adtalem here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. 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
11-06-2025
- Business
- Yahoo
Is Bright Horizons Family Solutions (BFAM) Outperforming Other Business Services Stocks This Year?
Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Has Bright Horizons Family Solutions (BFAM) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question. Bright Horizons Family Solutions is one of 271 individual stocks in the Business Services sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Bright Horizons Family Solutions is currently sporting a Zacks Rank of #2 (Buy). Over the past three months, the Zacks Consensus Estimate for BFAM's full-year earnings has moved 1.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive. Based on the latest available data, BFAM has gained about 12.3% so far this year. At the same time, Business Services stocks have gained an average of 5.1%. This shows that Bright Horizons Family Solutions is outperforming its peers so far this year. Dave Inc. (DAVE) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 158.4%. Over the past three months, Dave Inc.'s consensus EPS estimate for the current year has increased 90.6%. The stock currently has a Zacks Rank #1 (Strong Buy). Looking more specifically, Bright Horizons Family Solutions belongs to the Business - Services industry, a group that includes 26 individual stocks and currently sits at #61 in the Zacks Industry Rank. This group has gained an average of 16.4% so far this year, so BFAM is slightly underperforming its industry in this area. On the other hand, Dave Inc. belongs to the Technology Services industry. This 130-stock industry is currently ranked #46. The industry has moved +6.7% year to date. Bright Horizons Family Solutions and Dave Inc. could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks. 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 Bright Horizons Family Solutions Inc. (BFAM) : Free Stock Analysis Report Dave Inc. (DAVE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
26-05-2025
- Business
- Yahoo
Are Business Services Stocks Lagging Bright Horizons Family Solutions (BFAM) This Year?
For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Bright Horizons Family Solutions (BFAM) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question. Bright Horizons Family Solutions is a member of the Business Services sector. This group includes 270 individual stocks and currently holds a Zacks Sector Rank of #4. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group. 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. Bright Horizons Family Solutions is currently sporting a Zacks Rank of #2 (Buy). The Zacks Consensus Estimate for BFAM's full-year earnings has moved 1.7% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger. Based on the latest available data, BFAM has gained about 16.9% so far this year. In comparison, Business Services companies have returned an average of 2.5%. This means that Bright Horizons Family Solutions is outperforming the sector as a whole this year. Another stock in the Business Services sector, Dave Inc. (DAVE), has outperformed the sector so far this year. The stock's year-to-date return is 127%. The consensus estimate for Dave Inc.'s current year EPS has increased 101.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy). Looking more specifically, Bright Horizons Family Solutions belongs to the Business - Services industry, which includes 26 individual stocks and currently sits at #39 in the Zacks Industry Rank. On average, this group has gained an average of 16.8% so far this year, meaning that BFAM is performing better in terms of year-to-date returns. On the other hand, Dave Inc. belongs to the Technology Services industry. This 129-stock industry is currently ranked #51. The industry has moved +3% year to date. Bright Horizons Family Solutions and Dave Inc. could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks. 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 Bright Horizons Family Solutions Inc. (BFAM) : Free Stock Analysis Report Dave Inc. (DAVE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
