LGCY Earnings Prediction
The chart below shows how LGCY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, LGCY sees a -18.67% change in stock price 10 days leading up to the earnings, and a -3.43% change 10 days following the report. On the earnings day itself, the stock moves by +7.00%. This data can give you a slight idea of what to expect for the next quarter's release.
LGCY Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
13.64M
--
-2.64%
Gross Margin
44.37%
--
-7.52%
Operating Margin
12.16%
--
-36.27%
Net Margin
10.26%
--
-31.28%
EPS
0.10
--
-44.44%
No Data Available
LGCY Earnings Analysis
Legacy Education Inc Corporation (LGCY.A) Earnings Conference Call
Positive
Earnings Per Share Beat: Legacy Education Inc. reported earnings per share (EPS) of $0.10, exceeding expectations of $0.09, indicating strong financial performance.
Enrollment-Driven Revenue Growth: Revenue grew by 29.2% year-over-year to $13.6 million, driven by enrollment growth and expansion in high-demand health care programs.
Student Population Surge: The student population increased by 44.8% year-over-year to 2,768 students, reflecting strong enrollments and the impact of the Contra Costa Medical Career College acquisition.
Net Income Growth: Net income reached $1.4 million, representing an 8.5% growth year-over-year, showcasing the company's profitability.
Strong Operational Performance: EBITDA was reported at $1.8 million, with adjusted EBITDA at $1.9 million, indicating solid operational performance.
Cash Reserves for Growth: The company has cash reserves of $16.9 million, ensuring financial flexibility for future growth initiatives.
Acquisition Integration Success: Legacy Education successfully integrated the Contra Costa Medical Career College acquisition, which is expected to unlock new market opportunities and add 14 more programs.
Educational Program Expansion: The introduction of new program approvals, including Surgical Technology and Pharmacy Technician, demonstrates the company's commitment to expanding its educational offerings.
Enhanced Learning Models: The company has implemented hybrid learning models and advanced simulation technology to enhance student engagement and practical training in health care programs.
Negative
Impact of Los Angeles Fires: The company faced challenges due to the recent Los Angeles fires, which caused temporary disruptions to the Pasadena campus, affecting both employees and students.
EBITDA Growth Concerns: Despite a reported increase in revenue and net income, the growth rates for EBITDA and adjusted EBITDA were relatively modest at 3.6% and 10.1% year-over-year, indicating potential concerns about operational efficiency.
Regulatory Risk Monitoring: The company is closely monitoring regulatory changes within the Department of Education, which could pose risks to its operations, especially given the scrutiny faced by for-profit educational institutions.
Leadership Stability Concerns: The CEO's absence during the earnings call due to a medical procedure of the CFO may raise concerns about leadership stability during critical discussions.
Student Enrollment Challenges: While the company reported a strong increase in student enrollment, the growth in new student starts was only 3%, suggesting potential challenges in attracting new students at a faster rate.
LGCY FAQs
How does LGCY typically perform around its earnings report dates?
Is Legacy Education Inc (LGCY) Q2 2025 Earnings Call Summary positive or negative?
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LGCY Earning Call Sentiment
Legacy Education Inc. (AMEX:LGCY) Q2 2025 Earnings Call Transcript
LGCY.A
0%Positive
The earnings call presented a strong financial performance with record revenue growth of 35.1% YoY and a 95% increase in net income. The company also showed promising expansion efforts through new programs, campuses, and potential M&A opportunities. Despite competitive pressures and a temporary campus shutdown, management's optimistic guidance and robust demand for programs indicate positive momentum. The lack of a shareholder return plan is a minor downside. Overall, the sentiment is positive, likely leading to a stock price increase of 2% to 8% in the next two weeks.
