Industry Overview - The U.S. education market is expected to experience significant growth by 2025, driven by changes in industry demand, government initiatives, and technological advancements [1] - The U.S. higher education market, valued at $6 billion in 2024, is projected to grow to $16.8 billion by 2033, with a CAGR of 12.2% from 2025 onward [2] - Government initiatives, including student loans and funding for community colleges, are improving accessibility and affordability in high-demand fields like data science and cybersecurity [3] Growth Drivers - The rise of e-learning platforms is enabling institutions to offer a broader range of programs without the limitations of physical infrastructure, catering to students seeking flexible, career-aligned educational pathways [2] - The use of AI in education is increasing, enhancing personalized learning and preparing students for STEM careers [5] - The influx of international students is expected to contribute to the competitiveness and expansion of the U.S. education market [6] - There is a growing demand for healthcare education due to a shortage of skilled professionals, prompting education providers to expand programs in nursing and medical technology [7] - Alternative credentials, such as certificates and apprenticeships, are becoming popular as students prioritize flexible and cost-effective learning options [8] Company Insights - Several for-profit education stocks are identified as poised to benefit from the growing demand for specialized education, including Stride, Inc. (LRN), Universal Technical Institute, Inc. (UTI), Strategic Education, Inc. (STRA), Lincoln Educational Services Corporation (LINC), and Adtalem Global Education Inc. (ATGE) [9] - Stride, Inc. has seen a 76.9% increase in stock price over the past year, with an expected earnings growth of 41.6% for fiscal 2025 [10] - Universal Technical Institute has experienced a 119.9% stock price increase, with a projected earnings growth of 29.3% for fiscal 2025 [11] - Strategic Education has a stock price increase of 3.9% and an expected earnings growth of 17.7% for 2025 [12] - Lincoln Educational Services has risen 55.8% in stock price, with an expected earnings growth of 27.8% for 2025 [13] - Adtalem Global Education has rallied 45% in stock price, with an expected earnings growth of 17.6% for fiscal 2025 [14]

The U.S. education sector has seen diverse growth fueled by factors such as the growing popularity of e-books, the expansion of online learning platforms, increased demand for healthcare professionals, advancements in technology, the adoption of hybrid teaching models, and strategic acquisitions targeting global expansion. Despite these advancements, companies within the Zacks Schools industry face challenges, including higher advertising and marketing costs, expenses tied to online education, and the emerg ...

Net profit, also referred to as the bottom line, is one of the key tools to determine the financial health of an enterprise. The metric demonstrates a company’s ability to convert per-dollar sales into profits.A low profit margin indicates higher risks, implying that a revenue drop might dampen profits, thus pushing a company into the red. Graham Corporation (GHM) , Qifu Technology, Inc. (QFIN) , Adtalem Global Education Inc. (ATGE) and Strategic Education, Inc. (STRA) , however, boast solid net profit marg ...

Have you been paying attention to shares of Adtalem Global Education (ATGE) ? Shares have been on the move with the stock up 11.3% over the past month. The stock hit a new 52-week high of $85.26 in the previous session. Adtalem Global Education has gained 39.3% since the start of the year compared to the 5.9% move for the Zacks Consumer Discretionary sector and the 5.1% return for the Zacks Schools industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, ...

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.Our " ...

Adtalem Global Education Inc. (ATGE) posted better-than-expected results in first-quarter fiscal 2025. Earnings and revenues surpassed their respective Zacks Consensus Estimate and increased year over year, given strong enrollment growth and strategic initiatives. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. Adtalem registered strong quarterly performance, which was led by significant gains at Chamberlain University and Walden University. These gains were due to continued demand ...

Financial Data and Key Metrics Changes - Revenue for the quarter reached $417 million, reflecting a 13% increase compared to last year [8] - Adjusted EBITDA margin expanded by 140 basis points, leading to a 39% jump in adjusted earnings per share to $1.29 [8][25] - Adjusted net income for the quarter was $50.5 million, up 28.3% compared to last year [27] Business Line Data and Key Metrics Changes - Chamberlain reported first quarter revenue of $167.9 million, an increase of 17.8% compared to the prior year, driven by a total student enrollment increase of 11.7% [28] - Walden's first quarter revenue was $161.5 million, a 14.1% increase year-over-year, with total student enrollment up 12.2% [31] - Medical and Veterinary segment revenue increased by 3.9% to $88 million, with total enrollment growth trend improving [33] Market Data and Key Metrics Changes - Total enrollment improved for the 10th consecutive quarter, up 11.2% year-over-year, bringing total enrollment to over 90,000 students [9] - Chamberlain's BSN online option is now available in 36 states with over 2,000 students enrolled [14] - Walden remains a national leader in nursing with over 16,000 nursing students currently enrolled [16] Company Strategy and Development Direction - The company has commenced year two of its three-year "Growth with Purpose" strategy, focusing on operational excellence and generating substantial value for stakeholders [7] - Investments in marketing and student support are aimed at maintaining high persistence rates and enhancing the student experience [30][47] - The company is expanding its reach through partnerships and innovative programs, including a new partnership with the Oncology Nursing Society [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future enrollment trends and the strong demand for medical education in the U.S. [20] - The fiscal year 2025 guidance has been raised to project revenue between $1.69 billion and $1.73 billion, with adjusted earnings per share of $5.75 to $5.95 [21][38] - Management noted that the marketing investments are expected to deliver positive returns through increased future demand and strong persistence [30][51] Other Important Information - Free cash flow for the first three months of fiscal year 2025 was $79 million, with a trailing 12-month free cash flow of $243 million [35] - The balance sheet remains healthy, ending the first quarter with $265 million in cash and equivalents [36] - The company repurchased 462,000 shares during the quarter, continuing its share repurchase authorization [37] Q&A Session Summary Question: Growth acceleration at Chamberlain - Management noted positive trends in new enrollment, particularly in the post-licensure RN/BSN category, and believes this trend is sustainable [42][43] Question: Marketing expense allocation - Marketing resources are allocated dynamically based on attractive opportunities, with a significant portion shifted to Q2 [44][45] Question: Revenue growth and operating leverage - Despite increased marketing investments, management indicated that there are additional investments in student support impacting operating leverage [46][47] Question: Full year guidance and risk factors - Management clarified that the full year guidance reflects an improved outlook for revenue, with strong momentum across new enrollment [58][59]

Adtalem Global Education (ATGE) came out with quarterly earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.12 per share. This compares to earnings of $0.93 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 15.18%. A quarter ago, it was expected that this forprofit education company would post earnings of $1.24 per share when it actually produced earnings of $1.37, delivering a surprise of 10.48%. Over the l ...

Exhibit 99.1 News Release Investor Contact Jay Spitzer Investor.Relations@Adtalem.com +1 312-906-6600 GLOBAL EDUCATION Media Contact Britt Mitchell AdtalemMedia@Adtalem.com +1 872-270-0301 Adtalem Global Education First Quarter Fiscal Year 2025 Results; Guidance Raised Total enrollment up 11.2% YoY Revenue up 13.2% YoY Diluted earnings per share $1.18; Adjusted EPS $1.29, growth of 38.7% YoY First quarter highlights ● Total student enrollment 90,140, up 11.2% year-over-year ● Revenue $417.4 million, up 13.2 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |-------------------------------------------------------------------------------------|-------------------------------------------------| | | | | For the ...