BFAM Earnings Prediction
The chart below shows how BFAM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BFAM sees a +3.11% change in stock price 10 days leading up to the earnings, and a +6.41% change 10 days following the report. On the earnings day itself, the stock moves by -2.00%. This data can give you a slight idea of what to expect for the next quarter's release.
BFAM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
719.10M
11.35%
7.32%
Gross Margin
24.88%
7.06%
6.51%
Operating Margin
12.43%
20.10%
20.56%
Net Margin
7.64%
23.42%
30.60%
EPS
0.94
36.23%
40.30%
No Data Available
BFAM Earnings Analysis
BRIGHT HORIZONS FAMILY SOLUTIONS INC. Corporation (BFAM.N) Earnings Conference Call
Positive
Revenue Increase Driven by Backup Care: Total revenue increased 11% to $719 million, driven largely by our backup care segment through stronger use.
EBITDA Improvement and Growth: Adjusted EBITDA up 20% to $121 million, reflecting improved operational efficiency and revenue growth.
Adjusted EPS Growth: Adjusted EPS growing 26% to $1.11 per share, indicating strong profitability and effective cost management.
Child Care Revenue Growth: In our full service child care segment, revenue increased 9% to $487 million, showcasing robust demand and service expansion.
Center Expansion Update: We added six centers in the third quarter, including clients for Colorado School of Mines, Regeneron Pharmaceuticals, and Yale New Haven Health System.
Negative
Revenue Increase, Income Decrease: Total revenue increased 11% to $719 million, but adjusted operating income of $89 million or 12.4% of revenue decreased 34% over Q3 of '23.
Occupancy Rate Decline: The average occupancy percentage followed its typical seasonal pattern stepping down sequentially to the low 60s, indicating a decline in utilization rates.
Operational and Financial Progress: The UK continued to make operational and financial progress in the third quarter, but there is still a lot of work to be done to return operations to pre-pandemic performance levels.
Enrollment Growth Trends: The enrollment in centers opened for more than one year increased at a low single-digit rate in Q3 across our U.S. and international operations, reflecting weak growth in existing centers.
Operating Income Increase: The adjusted operating income of $12 million in the Full Services segment increased $5 million over the prior year, but overall performance remains below expectations.
BFAM FAQs
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BFAM Earning Call Sentiment
Bright Horizons Family Solutions Inc. (BFAM) Q3 2024 Earnings Conference Call Transcript
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BFAM.N
-1.05%Positive
The earnings call summary indicates strong financial performance with increased revenue, adjusted EBITDA, and EPS. However, challenges like low occupancy rates, muted EdAssist growth, and higher interest expenses temper the positive outlook. The Q&A section highlights concerns about occupancy and unclear management responses, which further moderate sentiment. Despite positive elements such as revenue growth and reduced leverage, the lack of a share repurchase program and regulatory funding changes weigh negatively. Overall, the balance of positive financial results and operational challenges suggests a neutral stock price reaction.