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 +0.24% change in stock price 10 days leading up to the earnings, and a +8.32% change 10 days following the report. On the earnings day itself, the stock moves by -1.74%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Strong Revenue Growth: Revenue grew by 14% to $4.48 billion, indicating strong financial performance.
Enrollment Growth Trend: Total enrollment increased by 11.6% year over year, marking the eleventh consecutive quarter of growth.
EBITDA Margin Expansion: Adjusted EBITDA margin expanded by 440 basis points, contributing to a 47% increase in adjusted earnings per share to $1.81.
Revenue and Enrollment Growth: Chamberlain University reported a 17.9% revenue increase, driven by an 11.5% rise in total student enrollment.
Enrollment and Revenue Surge: Walden University experienced a 16.7% revenue growth, with total student enrollment up 13.2%, reflecting strong demand for its programs.
Negative
Medical and Veterinary Revenue Stagnation: Revenue in the Medical and Veterinary segment increased only 2.8% to $9.54 million, indicating stagnation in growth compared to other segments.
Medical Segment Profitability Decline: Adjusted EBITDA margin for the Medical and Veterinary segment decreased by 40 basis points to 28%, reflecting reduced profitability in this area.
Enrollment Stability in Medical Segment: Total student enrollment in the Medical and Veterinary segment showed no change compared to the previous year, highlighting a lack of growth in this critical area.
Marketing Investment Stability: Marketing investment at Chamberlain was flat year over year, which may lead to fluctuations in margin rates and indicates potential challenges in driving future enrollment growth.
Growth Momentum Slowdown: The company anticipates more challenging comparisons in the second half of the fiscal year, suggesting a slowdown in growth momentum compared to the first half.