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 +1.50% change in stock price 10 days leading up to the earnings, and a +9.86% change 10 days following the report. On the earnings day itself, the stock moves by -1.68%. 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
674.15M
9.50%
-6.25%
Gross Margin
20.52%
17.66%
-17.52%
Operating Margin
7.15%
55.77%
-42.48%
Net Margin
4.32%
380.00%
-43.46%
EPS
0.50
455.56%
-46.81%
No Data Available
BFAM Earnings Analysis
Bright Horizons Family Solutions Inc Corporation (BFAM.N) Earnings Conference Call
Positive
Revenue and EPS Growth: Total revenue increased by 11% for the year, reaching $2.6 billion, while adjusted EPS grew by 22% to $3.43, significantly surpassing initial projections.
Strong Revenue and EBITDA Growth: In Q4, revenue rose 10% to $674 million, with adjusted EBITDA up 12% to $111 million, reflecting strong operational performance.
Back Up Care Revenue Growth: The Back Up Care segment achieved a remarkable 15% revenue growth in Q4, totaling $157 million, and generated $170 million in EBIT for the full year.
Child Care Revenue Growth: The Full Service Child Care segment saw an 8% revenue increase in Q4 to $485 million, with improved operating leverage contributing to a $17 million increase in adjusted operating income.
Revenue and EPS Growth Projections: For 2025, the company projects revenue between $2.85 billion and $2.9 billion, indicating a growth rate of 6% to 8%, alongside an expected adjusted EPS growth of 15% to 20%.
Negative
Enrollment Growth Stagnation: Enrollment in centers opened for more than one year increased at a low single digit rate in Q4, indicating stagnation in growth despite the addition of new centers.
Occupancy Rate Challenges: Average occupancy percentage remained in the low 60s, consistent with the prior quarter, reflecting ongoing challenges in filling available spaces in centers.
Urban Enrollment Challenges: The pace of growth in underperforming centers remains below expectations, particularly in urban business districts, highlighting persistent enrollment challenges.
UK Segment Financial Struggles: The UK segment is still a headwind to overall full service margin, with a projected loss of $10 million for 2024, indicating ongoing financial struggles in that market.
Net Interest Expense Impact: Net interest expense in Q4 was $11.5 million, reflecting increased financial burdens despite a cash build, which may impact future profitability.
BFAM FAQs
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BFAM Earning Call Sentiment
Earnings call transcript: Bright Horizons beats Q4 2024 EPS forecast
BFAM.N
-1.31%Positive
The earnings call presents a mixed outlook. While revenue and EPS growth are strong, the guidance is cautious, with enrollment growth challenges and potential headwinds from center closures and foreign exchange impacts. The UK operations remain a concern, although progress is noted. The share repurchase is a positive, but management's unclear responses in the Q&A raise uncertainties. Overall, these factors suggest a neutral market reaction, with no strong catalysts for significant price movement.
