MIAMI, Oct. 10, 2024 (GLOBE NEWSWIRE) -- Laureate Education, Inc. (NASDAQ: LAUR) plans to release results for the quarter ended September 30, 2024, on Thursday, October 31, 2024, before the stock market opens. Following the release, the Company will host a conference call with investors and analysts at 8:30 a.m. ET to discuss the second quarter results and the Company's business outlook. Interested parties are invited to listen to the earnings conference call by registering here to receive dial in informati ...

MIAMI, Sept. 13, 2024 (GLOBE NEWSWIRE) -- Laureate Education, Inc. (NASDAQ: LAUR) (the "Company") announced that its board of directors has approved a new stock repurchase program to acquire up to $100 million of the Company's common stock. The Company intends to finance the repurchases with free cash flow, excess cash and liquidity on-hand, including available capacity under its Revolving Credit Facility. The Company has completed the $100 million repurchase program that had previously been announced in Fe ...

Financial Data and Key Metrics Changes - The company reported revenue of $499 million and adjusted EBITDA of $187 million for Q2 2024, both metrics exceeding previous guidance [8][12] - On an organic constant currency basis, revenue increased by 7% year-over-year, while adjusted EBITDA grew by 6% [8][12] - For the first half of 2024, revenue and adjusted EBITDA grew by 5% and 1% respectively, with adjustments for academic calendar timing showing 7% growth for both metrics compared to the prior year [8][12] Business Line Data and Key Metrics Changes - In Mexico, new enrollments increased by 4% through June and total enrollments rose by 9% year-over-year, with revenue growing by 10% and adjusted EBITDA increasing by 21% in Q2 [9][10] - In Peru, new enrollments declined by 2%, while total enrollments increased by 1%. Revenue grew by 5% and adjusted EBITDA increased by 3% in Q2 [10] Market Data and Key Metrics Changes - The Mexican market is experiencing favorable dynamics for private higher education, driven by robust economic factors such as low unemployment and increased consumer spending [5][6] - Peru's economy is recovering, with GDP growth expected around 3% for the year, which is anticipated to benefit enrollment in the upcoming cycles [6][10] Company Strategy and Development Direction - The company aims to expand margins in Mexico to above 25% and is focused on product innovation, digital offerings, and campus expansions [9][15] - The company is committed to returning capital to shareholders, having repurchased over $72 million worth of shares in the first half of 2024 [5][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second half of 2024, highlighting strong performance in Mexico and a recovery in Peru [15] - The company is maintaining its full-year revenue and adjusted EBITDA guidance on a constant currency basis, while adjusting for foreign exchange impacts [12][13] Other Important Information - The company ended June with $129 million in cash and $233 million in gross debt, resulting in a net debt position of $104 million [11] - The company anticipates significant margin expansion in the second half of 2024, driven by the recovery in Peru and operational efficiencies [13] Q&A Session Summary Question: What drove the better-than-expected performance in Q2? - Management noted that about 50% of the outperformance was operational-related, with lower intra-cycle attrition and timing of revenue contributing to the results [19] Question: What are the expectations regarding regulation in Mexico with the new administration? - Management is encouraged by the new administration's focus on fiscal prudence, public-private collaboration, and modernization of industrial policies, which could positively impact private higher education [20]

Second Quarter 2024 Performance - Year-to-date New and Total Enrollments increased 2% and 5%, respectively, versus year-to-date prior year[9] - Q2 Net Income was $128 million, a $72 million increase compared to the prior year period[9] - Q2 Revenue reached $499 million, an 8% increase as reported and 7% on an organic constant currency basis[12] - Q2 Adjusted EBITDA was $187 million, a 7% increase as reported and 6% on an organic constant currency basis[12] Segment Results - Mexico's Q2 Revenue increased by 10% organically to $219 million, with Adjusted EBITDA up by 21%[14] - Peru's Q2 Revenue increased by 5% organically to $281 million, but Adjusted EBITDA increased by 3%[16] - Mexico's total enrollment increased 9%[12], while Peru's total enrollment increased 1%[12] 2024 Outlook - The company reaffirms full-year 2024 guidance on a constant currency basis but adjusts as-reported guidance down by $15 million for Revenue and $5 million for Adjusted EBITDA due to Mexican peso volatility[9] - Full-year 2024 Revenue is expected to grow by 5%-6% on both an as-reported and organic constant currency basis[18] - Full-year 2024 Adjusted EBITDA is expected to grow by 5%-8% as reported and 6%-9% on an organic constant currency basis[18]

Investment Thesis - Laureate Education is positioned as a leading player in the private higher education sector in Mexico and Peru, with a projected share value between $20 and $23, indicating a potential upside of 40-60% from current levels [2] - The company has a low leverage ratio (0.2x Net Debt/EBITDA) and is undervalued based on earnings and free cash flow multiples [2] - Global trends such as the shift to hybrid and online education models and nearshoring in Mexico are expected to drive growth for Laureate [2] Company Overview - Laureate Education holds market shares of 11% in Mexico and 17% in Peru, with over 450,000 students enrolled across 50 campuses and 5 universities [3] - The company has strong brand recognition and high accreditation standards, contributing to retention rates around 80% [3] - Average revenue per student ranges from $3,000 to $4,000 annually, with total revenues around $1.5 billion and EBITDA margins of approximately 30% [4] Growth Opportunities - Higher education penetration rates are low in Mexico and Peru, with over 90% of new educational offerings coming from private institutions [7] - Online education penetration is significantly lower in these markets compared to advanced economies, presenting a substantial growth opportunity [7] - The nearshoring trend allows Laureate to create industry partnerships and align educational programs with job market needs [8] Growth Strategy - The company aims to achieve a 10% revenue growth rate over the next five years, driven by new educational centers, programs, and online expansion [9] - EBITDA margins are expected to improve through operational efficiencies and a greater emphasis on online education [9] Financial Performance and Shareholder Returns - Laureate has returned $10 per share in dividends from 2021 to 2024, equating to 70% of the current share value [10] - The company has reduced capital expenditures to around 5% of revenues, leading to significant free cash flow [10] - Share repurchases have been a method of returning capital to investors, indicating management's belief in the stock's undervaluation [10] Valuation - A discounted cash flow model and comparables analysis suggest estimated share prices between $18 and $23, reflecting a potential upside of 30-60% [12] - Current multiples are compressed at around 5x EBITDA, compared to historical multiples of 8x to 15x [11] Conclusion - Laureate Education is well-positioned to benefit from the growing demand for higher education in Latin America, with significant potential for shareholder returns [16] - The company's strategic focus on hybrid and online learning, along with its established brand presence, supports its growth trajectory [16]

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time. As such, the Zacks rating upgrade for Laureate Education is essentially a positive comment on its earnings outlook that could have a favorable impact on its ...

Laureate Education (LAUR) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank. Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company u ...

Core Insights - Laureate Education, Inc. operates five higher education institutions in Mexico and Peru, enrolling nearly 450,000 students in various degree programs through both campus-based and online learning [1] - The company emphasizes academic quality, innovation, and market-leading employability outcomes, aiming to make higher education more accessible [1] Financial Information - Laureate Education, Inc. plans to release its financial results for the quarter ended June 30, 2024, on August 1, 2024, before the stock market opens [3] - A conference call will be held at 8:30 a.m. ET on the same day to discuss the second quarter results and the company's business outlook [3] Investor Relations - Interested parties can register to listen to the earnings conference call and receive dial-in information [2] - The webcast of the conference call, including replays, will be available through the Investor Relations section of the company's website [5]

MIAMI, May 30, 2024 /PRNewswire/ -- Laureate Education, Inc. (NASDAQ: LAUR) (the "Company") announced the election of William J. Davis as an independent member of the Laureate Education, Inc. Board of Directors at today's 2024 Annual Meeting of Stockholders. Mr. Davis was also appointed to the Board's Audit & Risk Committee. "We are excited to welcome Bill Davis to Laureate's Board of Directors. With over 30 years of proven operational, financial and technology experience, Bill will be a valuable addition t ...

ferrantraite/E+ via Getty Images Synopsis Laureate Education (NASDAQ:LAUR) operates a number of higher education institutions in Mexico and Peru. LAUR's historical financial results have shown strong revenue growth. Additionally, its profit margins have been expanding annually as well. For its latest 1Q24 earnings, it continued to deliver top-line growth, although I note that the first quarter is typically a weaker revenue quarter for LAUR. Looking ahead, the low higher education gross participation rate, s ...