Kindercare Q3 revenue slightly misses estimates on lower enrollment
Overview
US early childhood education provider's Q3 revenue fell 1.7%, slightly missing analyst expectations
Q3 adjusted loss per share and adjusted net loss both missed analyst estimates
Company cites lower enrollment and higher impairment losses as main drivers of weaker results
Outlook
Kindercare expects 2026 revenue between $2.64 bln and $2.66 bln
Company sees 2026 adjusted EBITDA of $190 mln to $195 mln
Kindercare expects 2026 adjusted net income per share of $0.02 to $0.04
Result Drivers
LOWER ENROLLMENT - Co said a 5.9% drop in enrollment at early childhood education centers drove revenue decline, partially offset by higher tuition rates
CENTER CLOSURES - Closure of 20 centers as part of ongoing optimization further reduced enrollment and revenue
IMPAIRMENT LOSSES - Higher impairment losses, mainly from goodwill and long-lived asset write-downs, weighed on operating results
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Miss* | $665.30 mln | $668.77 mln (6 Analysts) |
Q3 Adjusted Loss Per Share | Miss | $0.03 | $0.002 (8 Analysts) |
Q3 Loss Per Share | $0.71 | ||
Q3 Adjusted Net Loss | Miss | $3 mln | $917,500 (4 Analysts) |
Q3 Net Loss | $85 mln | ||
Q3 Adjusted EBITDA | Miss | $42.50 mln | $46.14 mln (6 Analysts) |
Q3 Income from Operations | -$75.50 mln |
*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 "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and 3 "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 KinderCare Learning Companies, Inc. is $4.00, about 86.9% above its November 11 closing price of $2.14
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 20 three months ago
Reuters Recommended Reads
Nov 9 - American Public Education Q3 revenue beats estimates on Health+ segment growth
Nov 9 - Lineage Inc Q3 revenue falls 1.2%
Nov 10 - Grocery Outlet Q3 adjusted EBITDA misses estimates, cuts FY guidance
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(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.)