These Analysts Cut Their Forecasts On KinderCare Learning Following Weak Q2 Earnings

Core Insights - KinderCare Learning Companies, Inc. reported weaker-than-expected earnings for Q2, with earnings of $0.22 per share, missing the analyst consensus estimate of $0.26 per share, and quarterly sales of $700.110 million, below the consensus estimate of $705.651 million [1] - The company narrowed its FY2025 adjusted EPS guidance from a range of $0.75-$0.85 to $0.77-$0.82 and also narrowed sales guidance from $2.750 billion-$2.850 billion to $2.750 billion-$2.800 billion [2] - CEO Paul Thompson noted that while revenue growth continued, enrollment trends softened late in the quarter, with occupancy remaining at 71%, similar to pre-pandemic levels [3] Analyst Reactions - Following the earnings announcement, analysts adjusted their price targets for KinderCare Learning, with Baird lowering its target from $20 to $13, BMO Capital from $18 to $12, Goldman Sachs from $23 to $20, and Morgan Stanley from $15 to $14 [4][6] - Despite the lowered price targets, several analysts maintained an Outperform or Buy rating on the stock [6] Stock Performance - KinderCare Learning shares experienced a significant decline of 22.1%, trading at $7.64 following the earnings report [3]