ATGE Earnings Prediction
The chart below shows how ATGE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ATGE sees a +0.41% change in stock price 10 days leading up to the earnings, and a +8.23% change 10 days following the report. On the earnings day itself, the stock moves by -1.92%. This data can give you a slight idea of what to expect for the next quarter's release.
ATGE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
417.40M
13.16%
1.83%
Gross Margin
55.44%
2.14%
-0.05%
Operating Margin
17.67%
316.75%
1.09%
Net Margin
11.08%
241.98%
-10.21%
EPS
1.18
372.00%
-7.81%
No Data Available
ATGE Earnings Analysis
Adtalem Global Education Inc. Common Shares Corporation (ATGE.N) Earnings Conference Call
Positive
Q1 Revenue Increase: 1. Revenue Growth: Adtalem Global Education reported a revenue of $417 million for Q1 2025, marking a 13% increase compared to the previous year.
Enrollment Growth Milestone: 2. Enrollment Increase: Total enrollment rose by 11.2% year-over-year, reaching over 90,000 students, marking the 10th consecutive quarter of enrollment growth.
Earnings Per Share Increase: 3. Adjusted Earnings Per Share: The adjusted earnings per share increased by 39% to $1.29, reflecting strong operational performance and profitability.
Free Cash Flow Increase: 4. Free Cash Flow: The company generated $79 million in free cash flow for the first quarter, contributing to a trailing 12-month free cash flow of $243 million, up $85 million from the prior period.
Share Repurchase Activity: 5. Share Repurchase: Adtalem repurchased 462,000 shares during the quarter, reducing diluted shares outstanding to 39.1 million, a decrease of 3.1 million compared to last year.
Negative
Enrollment Decline in Medical Segment: 1. Declining Enrollment in Medical and Veterinary Segment: Total enrollment in the Medical and Veterinary segment decreased by 0.7% compared to the prior year, indicating a stagnation in growth despite overall positive trends in other segments.
Adjusted EBITDA Margin Decline: 2. Lower Adjusted EBITDA Margin in Chamberlain: Chamberlain's adjusted EBITDA margin was 22%, which is 10 basis points lower than the prior year, reflecting increased investments in marketing and student support that offset operational leverage gains.
Marketing Investment Concerns: 3. Increased Marketing Costs Without Immediate Returns: Despite strong revenue growth, the company increased marketing investments year-over-year, which may not yield immediate returns, potentially impacting future profitability.
Stagnant EBITDA Margin: 4. Stagnant Adjusted EBITDA Margin in Medical and Veterinary Segment: The adjusted EBITDA margin for the Medical and Veterinary segment was 21.8%, which is 70 basis points lower than the prior year, indicating challenges in maintaining profitability amidst rising costs.
Marketing Expense Reallocation: 5. Shift in Marketing Expenses: The company shifted some planned marketing expenses from Q1 to Q2, which could lead to a temporary dip in marketing effectiveness and revenue growth in the first half of the fiscal year.
ATGE FAQs
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ATGE Earning Call Sentiment
Adtalem Global Education, Inc. (ATGE) Q1 2025 Earnings Call Transcript
ATGE.N
0.8%Positive
The earnings call summary reflects strong financial performance with a 13% revenue increase and significant growth in adjusted EBITDA and net income. The company also reported successful enrollment growth and strategic investments in marketing and student support, which are expected to sustain positive trends. Additionally, the share repurchase program and optimistic guidance for FY 2025 further support a positive outlook. Despite some concerns about marketing expenses and margin pressure, the overall sentiment remains positive, with a likely stock price increase of 2% to 8% over the next two weeks.