Vocational education company Adtalem Global Education (NYSE:ATGE) will be reporting earnings tomorrow after market close. Here’s what investors should know.
Adtalem beat analysts’ revenue expectations by 5.3% last quarter, reporting revenues of $417.4 million, up 13.2% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EPS estimates.
Is Adtalem a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Adtalem’s revenue to grow 8.7% year on year to $427.5 million, in line with the 8.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.37 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 3.9% 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’s revenues decreased 7.7% year on year, beating analysts’ expectations by 1.8%, and VF Corp reported revenues up 1.9%, topping estimates by 2.8%. Nike’s stock price was unchanged following the results.
Read our full analysis of Nike’s results here and VF Corp’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 5.1% on average over the last month. Adtalem is up 6.8% during the same time and is heading into earnings with an average analyst price target of $111.33 (compared to the current share price of $97).
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