Core Points - Laureate Education, Inc. will release its financial results for the quarter ended September 30, 2025, on October 30, 2025, before the stock market opens [1] - A conference call will be held at 8:30 a.m. ET on the same day to discuss the third quarter results and the company's business outlook [1] - Interested parties can register to listen to the earnings conference call and access related materials through the company's Investor Relations website [2] Company Overview - Laureate Education, Inc. operates five higher education institutions in Mexico and Peru, with over 470,000 students enrolled in various degree programs [3] - The company emphasizes academic quality, innovation, and market-leading employability outcomes, aiming to make higher education more accessible [3] - The company's mission highlights the connection between student success and broader societal benefits [3]

Group 1 - Guess (GES) is a member of the Consumer Discretionary group, which includes 254 companies and is currently ranked 9 in the Zacks Sector Rank [2] - Guess has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for Guess's full-year earnings has increased by 8.1% over the past 90 days, reflecting improved analyst sentiment [3] Group 2 - Year-to-date, Guess has returned 18.8%, outperforming the average gain of 10.9% for the Consumer Discretionary group [4] - In the Textile - Apparel industry, which includes 21 stocks, Guess is performing better as this industry has seen an average loss of 29.6% this year [5] - Laureate Education (LAUR), another stock in the Consumer Discretionary sector, has returned 62.5% year-to-date, indicating strong performance within the sector [4][6]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI technologies [3][7][8] AI and Energy Demand - AI technologies, particularly large language models like ChatGPT, are extremely energy-intensive, with data centers consuming as much energy as small cities [2] - The energy requirements for AI are expected to escalate, leading to potential crises in power grids and rising electricity prices [2] - Industry leaders, including Sam Altman and Elon Musk, have warned about the impending energy challenges facing AI development [2] Investment Opportunity - The company in focus is positioned to benefit from the surge in demand for electricity driven by AI data centers, making it a unique investment opportunity [3][6] - It is described as a "toll booth" operator in the energy sector, profiting from the export of American liquefied natural gas (LNG) and the onshoring of manufacturing due to tariffs [5][6] - The company is noted for its debt-free status and substantial cash reserves, which amount to nearly one-third of its market capitalization [8][10] Market Position and Valuation - The company is involved in large-scale engineering, procurement, and construction (EPC) projects across various energy sectors, including nuclear energy, which is crucial for America's future power strategy [7][8] - It is trading at a low valuation of less than 7 times earnings, making it an attractive option for investors looking for undervalued stocks in the AI and energy space [10][11] - The company also holds a significant equity stake in another AI-related venture, providing indirect exposure to multiple growth opportunities [9][10] Future Outlook - The ongoing influx of talent into the AI sector is expected to drive continuous innovation and advancements, reinforcing the importance of investing in AI-related companies [12] - The combination of AI infrastructure needs, energy demands, and favorable market conditions presents a compelling case for investment in the highlighted company [14][15]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting competent advisors before making any financial decisions, particularly in the context of investments and trading activities [1]. Group 1 - The website provides general news, personal analysis, and third-party content intended for educational and research purposes [1]. - It explicitly states that the information does not constitute any recommendation or advice for investment actions [1]. - Users are advised to perform their own research and consider their financial situation before making decisions [1]. Group 2 - The website includes information about complex financial instruments such as cryptocurrencies and contracts for difference (CFDs), which carry a high risk of losing money [1]. - It encourages users to understand how these instruments work and the associated risks before investing [1].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Laureate Education (LAUR) - Laureate Education currently holds a Momentum Style Score of B, indicating a positive momentum outlook [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] Price Performance - Over the past week, LAUR shares increased by 1.35%, while the Zacks Schools industry remained flat [5] - In the last month, LAUR's price change was 3.69%, compared to the industry's 5.55% [5] - Over the past quarter, LAUR shares rose by 22.72%, and over the last year, they gained 88.06%, significantly outperforming the S&P 500's increases of 8.78% and 20.41% respectively [6] Trading Volume - LAUR's average 20-day trading volume is 781,317 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, two earnings estimates for LAUR have been revised upwards, while none have been revised downwards, leading to an increase in the consensus estimate from $1.67 to $1.73 [9] - For the next fiscal year, one estimate has moved upwards with no downward revisions noted [9] Conclusion - Considering the positive momentum indicators and earnings outlook, LAUR is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]

Core Insights - The Zacks Schools industry is experiencing a rebound driven by increased demand for career-focused programs in healthcare, skilled trades, cybersecurity, and IT, supported by a labor market that values job-ready skills and government initiatives promoting non-degree pathways [1][2] - Digital innovation is a key differentiator, with institutions investing in adaptive learning tools and scalable online platforms to enhance engagement and support flexible learning for working adults [1][8] - The sector is undergoing consolidation as larger players acquire smaller institutions to broaden offerings and improve scale, with recent legislative changes like "Workforce Pell" expanding market opportunities for accredited programs [6][12] Industry Overview - The Zacks Schools industry includes for-profit education companies offering undergraduate, graduate, and specialized programs in various fields such as finance, healthcare, and technology [3] - The industry is focused on providing career-oriented programs that align with labor market needs, particularly in high-demand areas like nursing and cybersecurity [3][5] Trends Influencing Growth - There is a rising demand for workforce-oriented programs, particularly among adult learners and career switchers, as the labor market increasingly values job-ready skills over traditional degrees [4] - The healthcare sector is facing a significant shortage of skilled professionals, prompting educational institutions to design rigorous programs that meet workforce needs [5] - Digital transformation is driving interest in IT boot camps and tech-aligned certifications, where for-profit providers have established a scalable presence [4] Financial Performance and Market Position - The Zacks Schools industry has lagged the broader Zacks Consumer Discretionary sector but has outperformed the S&P 500 Composite over the past year, with a collective gain of 20.6% [16] - The industry's forward 12-month price-to-earnings ratio is currently at 15.32X, lower than the S&P 500's 22.76X, indicating potential value opportunities [19] Company Highlights - Grand Canyon Education has seen a 10% increase in total online enrollment and a 42.1% stock surge over the past year, with earnings for 2025 expected to grow by 12.8% [25] - Laureate Education's stock has rallied 76.6% over the past year, with a projected earnings growth of 28.2% for 2025 [28] - Stride has experienced a 107.8% stock increase, with fiscal 2026 earnings expected to grow by 5.2% [32] - Lincoln Educational Services has surged 59.5% in stock price, with a projected earnings growth of 19.6% for 2025 [34] - Perdoceo Education's stock has risen 44.7%, with earnings for 2025 expected to grow by 10% [39]

Core Viewpoint - Laureate Education reported a 5% year-over-year revenue growth to $524.2 million for Q2 2025, exceeding consensus estimates, while GAAP EPS fell short of expectations due to foreign currency translation losses [1][5][8] Financial Performance - Revenue for Q2 2025 was $524.2 million, up from $499.2 million in Q2 2024, representing a 5% increase [2] - Adjusted EPS was $0.79, a 21.5% increase from $0.65 in Q2 2024, while GAAP EPS decreased by 21.7% to $0.65 [2][8] - Adjusted EBITDA rose to $214.5 million, a 14.8% increase year-over-year, with operating income improving to $193.3 million, up 16% [2][6] - Enrollment growth was strong, with new student enrollments increasing by 7% overall, and total student enrollments reaching 472,100, up 6% [7] Business Overview - Laureate Education focuses on higher education in Mexico and Peru, emphasizing professional and applied programs in high-demand fields such as health sciences, STEM, and business [3][11] - The company has concentrated on growing market share, tailoring curricula to meet employer needs, strengthening local brands, and investing in digital education formats [4] Strategic Focus - The company aims to navigate regulatory requirements and maintain accreditation in Mexico and Peru, which are critical for its success [4][14] - Digital courses are expanding rapidly, with enrollments growing three to four times faster than traditional formats, catering to working adults [7][13] Outlook - Management raised FY2025 revenue guidance to between $1.615 billion and $1.630 billion, reflecting stronger-than-expected enrollment trends [15] - Adjusted EBITDA guidance was also increased to $489 million to $496 million for FY2025, with total enrollments projected to grow by 4% to 5% [15]

Financial Data and Key Metrics Changes - Total enrollments increased by 6% year-over-year, driven by a 7% growth in new enrollments [15][17] - Revenue for the second quarter was $524 million, with adjusted EBITDA at $214 million, both metrics exceeding previous guidance [15][16] - Adjusted net income for the second quarter was $118 million, resulting in adjusted earnings per share of $0.79 [16] Business Line Data and Key Metrics Changes - In Mexico, new enrollments increased by 6%, with total enrollments up 7% [17] - Mexico's revenue for the second quarter increased by 9% year-over-year, while adjusted EBITDA rose by 19% [18] - In Peru, total enrollment growth was 6%, with revenue increasing by 7% and adjusted EBITDA up 9% [19] Market Data and Key Metrics Changes - Mexico's economic resilience is supported by solid financial systems and continued interest rate cuts, positioning it for improved GDP growth [9] - Peru's economy has shown a turnaround with 3.1% GDP growth year-to-date, supported by stable inflation and low interest rates [10] Company Strategy and Development Direction - The company is expanding its campus footprint with new openings in Monterrey, Mexico, and Lima, Peru, as part of its growth strategy [8] - The focus is on broadening the academic portfolio and scaling digital offerings to serve working adults [25] - The company has identified numerous potential sites for development in Mexico and Peru over the next five years [8] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the demand for quality higher education across both markets, despite geopolitical complexities [11] - The company is raising its full-year 2025 outlook for revenue by $55 million and adjusted EBITDA by $16 million [7][21] - The operating trends remain solid, with expectations for total enrollments to grow by 4% to 5% versus 2024 [22] Other Important Information - The company ended June with $135 million in cash and $116 million in gross debt, resulting in a net cash position of $19 million [20] - The third quarter is expected to be the largest cash flow intake period, with plans to return excess capital to shareholders [20] Q&A Session Summary Question: Any indications on the student application pipeline for Mexico's primary intake period this fall? - Management is encouraged by the trends, noting strong growth in working adult enrollments and positive indicators for traditional undergraduate students [28][30] Question: What contributed to the revenue upside for the quarter? - The outperformance was primarily associated with foreign exchange rates, with $18 million attributed to FX and $2 million to operational performance [31][32] Question: How is the online learning trend developing in Peru? - The online learning business in Peru is growing double digits, with strong interest from working adult students, similar to trends seen in Mexico [36][37] Question: Can you provide details about the new campuses being opened? - Two new campuses are set to open in September, one in Monterrey for Unitech and one in Lima for UPN, with strong demand anticipated [38][39]

Financial Data and Key Metrics Changes - Year-to-date new and total enrollments increased by 76% compared to the prior year, driving a 9% growth in revenue on a timing adjusted and constant currency basis [6][7] - Revenue for the second quarter was $524 million, with adjusted EBITDA at $214 million, both metrics exceeding previous guidance [15] - Second quarter net income was $97 million, resulting in earnings per share of $0.65, while adjusted net income was $118 million with adjusted earnings per share of $0.79 [15][21] Business Line Data and Key Metrics Changes - In Mexico, new enrollments increased by 6% and total enrollments rose by 7%, with revenue for the second quarter up 9% and adjusted EBITDA up 19% [17][18] - In Peru, total enrollment growth was 6%, with revenue increasing by 7% and adjusted EBITDA up 9% [19][20] Market Data and Key Metrics Changes - Mexico's economy is showing resilience with solid financial systems and continued interest rate cuts, positioning it for improved GDP growth in 2026 and beyond [8][9] - Peru's economy has shown a turnaround with 3.1% GDP growth year-to-date, supported by stable inflation and strong business confidence [10] Company Strategy and Development Direction - The company is expanding its academic portfolio and digital offerings while strategically opening new campuses in high-growth areas [25][26] - Two new campuses are set to open in Monterrey, Mexico, and Lima, Peru, with plans for additional campuses in the future [7][41] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the demand for quality higher education in Mexico and Peru, citing a growing middle class and favorable regulatory environments [25][27] - The company is raising its full-year 2025 outlook for revenue by $55 million and for adjusted EBITDA by $16 million, reflecting improved foreign currency exchange rates [7][21] Other Important Information - The company ended June with $135 million in cash and $116 million in gross debt, resulting in a net cash position of $19 million [20] - The company repurchased $71 million of common stock under a previously announced $100 million repurchase program [20] Q&A Session Summary Question: Any indications on the student application pipeline for Mexico's primary intake period this fall? - Management is encouraged by the trends, noting strong growth in working adult programs and positive indicators for traditional undergraduate students [30][31] Question: What contributed to the revenue upside for the quarter? - The outperformance was primarily associated with foreign exchange rates, with $18 million attributed to FX and $2 million to operational outperformance [33][34] Question: How is the online learning trend developing in Peru? - The online learning business in Peru is growing double digits, with strong interest from working adult students, similar to trends seen in Mexico [39][40] Question: Can you provide details about the new campuses? - New campuses are opening in Monterrey for Unitech and in East Lima for UPN, with strong demand anticipated [40][41] Question: How does the CapEx level change with new campus openings? - CapEx as a percentage of revenues is expected to increase to about 5% to support growth, with potential increases if additional campuses are launched [42][43]

Q2 2025 Performance - New Enrollments increased by 42% in Q2 2025 as reported[27] - Total Enrollment increased by 6% in Q2 2025 as reported, reaching 472,000[27] - Revenue increased by 5% to $524 million in Q2 2025 as reported[27] - Adjusted EBITDA increased by 15% to $214 million in Q2 2025 as reported[27] - Adjusted EBITDA margin increased by 348 bps to 409% in Q2 2025 as reported[27] - Year-to-date New Enrollments increased 7% and Total Enrollments increased 6%[18] H1 2025 Performance - Revenue was $760 million, a decrease of 2% as reported, but an increase of 6% organically[30] - Adjusted EBITDA was $220 million, an increase of 1% as reported, but an increase of 9% organically[30] - Adjusted EBITDA margin was 289%, an increase of 83 bps as reported[30] Capitalization and Share Count - Cash & Cash Equivalents totaled $135 million as of June 30, 2025[43] - Net Cash was $19 million as of June 30, 2025[43] - $71 million of shares were repurchased in H1 2025[43] 2025 Outlook - Revenue growth is expected at 3%-4% on a USD reported basis, and 6%-7% on an organic constant currency basis[50] - Adjusted EBITDA growth is expected at 9%-10% on a USD reported basis, and 11%-13% on an organic constant currency basis[50] - The company increased full-year 2025 guidance by $55 million for Revenue and $16 million for Adjusted EBITDA due to strengthening of MXN and PEN currencies[18]