AFYA Earnings Prediction
The chart below shows how AFYA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AFYA sees a -1.02% change in stock price 10 days leading up to the earnings, and a +1.42% change 10 days following the report. On the earnings day itself, the stock moves by -0.39%. This data can give you a slight idea of what to expect for the next quarter's release.
AFYA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
809.89M
13.65%
0.70%
Gross Margin
61.13%
1.71%
-8.06%
Operating Margin
28.50%
14.97%
-20.79%
Net Margin
20.03%
63.11%
-22.66%
EPS
1.74
89.13%
-21.62%
No Data Available
AFYA Earnings Analysis
Afya Limited Class A Common Shares Corporation (AFYA.O) Earnings Conference Call
Positive
Net revenue increased almost 14% to R$810 million, with an adjusted EBITDA growth of 28% year-over-year reaching R$344 million. Adjusted net income reached R$210 million, marking a 59% growth compared to the same period in 2023.
There was a significant increase in the number of medical students, reaching 22,661 students, representing a 9% volume growth compared to the previous year. The company now has a total of 3,583 approved seats.
Continuing education business demonstrated impressive results with a revenue increase of over 12% year-over-year, resulting in a net revenue of R$127 million in the first six-month period of 2024.
Medical practice solutions showed significant progress with a revenue increase of 13% compared to the first half of 2023, concluding the six-month period with a net revenue of R$77 million. There was also a recovery in B2B net revenue for this segment.
Afya provided updated guidance with a new net revenue range between R$3.225 billion to R$3.325 billion, an adjusted EBITDA range between R$1.375 billion to R$1.475 billion, and a CapEx range between R$220 million and R$260 million for capital expenditures.
Negative
- Despite overall revenue growth, the net average ticket for medical courses only grew by 5.4%, which may indicate slower growth in this key segment compared to other areas of the business.
- A 15% decrease in net revenue from B2B offerings within the continuing education segment could raise concerns about the sustainability and profitability of these programs.
- The growth in active payers in the medical practice solutions segment was only 13%, which might suggest challenges in expanding the user base and generating consistent revenue from this segment.
- Although the company reduced its net debt, the net debt to EBITDA ratio only decreased slightly from 1.6x to 1.5x, indicating that the company's debt reduction efforts may not be as significant as desired.
AFYA FAQs
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AFYA Earning Call Sentiment
Afya Limited (AFYA) Q2 2024 Earnings Call Transcript
1.0x
00:00
00:00
AFYA.O
2.81%Positive
The earnings call summary indicates strong financial performance, with significant year-over-year growth in revenue, EBITDA, and EPS. The acquisition of Unidompedro and expansion in medical school capacity suggest future growth. Despite risks like regulatory challenges and debt, the company's restructuring and strategic acquisitions are expected to drive continued growth. The Q&A section reassures on cost management and competitive positioning. The company's market cap suggests moderate sensitivity to these factors, leading to a positive stock price movement prediction in the 2% to 8% range.