Laureate Education Q3 revenue rises 21%, beats estimates

By Reuters News


Overview

  • US higher education operator's Q3 revenue rose 21% yr/yr, beating analyst expectations

  • Adjusted EBITDA for Q3 grew and beat analyst expectations

  • Company increased share repurchase authorization by $150 mln


Outlook

  • Laureate reaffirms 2026 revenue outlook of $1.92 bln to $1.93 bln

  • Company expects 2026 adjusted EBITDA between $593 mln and $599 mln

  • Laureate sees 2026 adjusted EPS between $2.04 and $2.10


Result Drivers

  • ENROLLMENT GROWTH - Co said new enrollments increased in both Mexico and Peru, supported by new campus launch and expansion of online offerings

  • ACADEMIC CALENDAR TIMING - Co said Q3 revenue was favorably affected by semester start dates, resulting in intra-year timing benefits

  • TAX BENEFIT - Co said net income was boosted by a discrete tax benefit recorded in Q3


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$485.10 mln

$480.17 mln (4 Analysts)

Q3 Net Income

$101.20 mln

Q3 Adjusted EBITDA

Beat

$146.80 mln

$140.78 mln (4 Analysts)

Q3 Operating Income

$119.10 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the schools, colleges & universities peer group is "buy"

  • Wall Street's median 12-month price target for Laureate Education, Inc. is $42.00, about 15.5% above its October 28 closing price of $36.36

  • The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago


Reuters Recommended Reads

  • Oct 28 - China's New Oriental Education Q1 revenue rises 23%, confirms guidance

  • Oct 27 - Exlservice Q3 revenue rises 20%, raises FY revenue and adjusted EPS outlook

  • Oct 27 - Manhattan Associates Q3 revenue beats estimates on cloud subscription growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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