Bright Horizons Q3 revenue slightly misses estimates

Overview

• US early education provider's Q3 revenue rose 5% yr/yr, slightly missing analyst expectations

• Adjusted EPS for Q3 rose 15% and beat analyst expectations

• Company posted net loss due to $294 mln impairment in international operations

Outlook

• Company sees 2026 revenue at about $3.07 bln

• Bright Horizons expects 2026 diluted adj EPS between $4.98 and $5.03

Result Drivers

• BACK-UP CARE GROWTH - Co said Q3 revenue growth was primarily driven by 13% increase in back-up care services

• INTERNATIONAL IMPAIRMENT - Co said $294 mln impairment in international operations drove operating loss

• HIGHER INTEREST AND TAXES - Co said higher interest expense and effective tax rate reduced adjusted net income

Company press release: Full Story

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the personal services peer group is "buy"

• Wall Street's median 12-month price target for Bright Horizons Family Solutions Inc. is $88.34, about 27.5% above its October 28 closing price of $69.29

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

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

• Oct 29 - China's TAL Education Q2 revenue misses estimates

• Oct 29 - Laureate Education Q3 revenue rises 21%, beats estimates

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.)