Education company Lincoln Educational (NASDAQ:LINC) will be reporting earnings tomorrow before the bell. Here’s what to look for.
Lincoln Educational beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $114.4 million, up 14.8% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ EPS estimates. It reported 15,887 enrolled students, up 13.2% year on year.
Is Lincoln Educational a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Lincoln Educational’s revenue to grow 8.9% year on year to $111.6 million, slowing from the 11.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.29 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. Lincoln Educational has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.7% on average.
Looking at Lincoln Educational’s peers in the education services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Adtalem delivered year-on-year revenue growth of 13.9%, beating analysts’ expectations by 4.7%, and Universal Technical Institute reported revenues up 15.3%, topping estimates by 3.9%. Adtalem traded up 4.6% following the results while Universal Technical Institute was also up 3.8%.
Read our full analysis of Adtalem’s results here and Universal Technical Institute’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the education services stocks have shown solid performance, the group has generally underpeformed, with share prices down 2.7% on average over the last month. Lincoln Educational is up 2.6% during the same time and is heading into earnings with an average analyst price target of $20 (compared to the current share price of $16.05).
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