Adtalem (ATGE) Q2 Earnings & Revenues Top, '24 View Raised

Core Insights - Adtalem Global Education Inc. (ATGE) reported strong second-quarter fiscal 2024 results, with earnings and revenues exceeding expectations and showing year-over-year growth [1][2] - The company has raised its fiscal 2024 guidance due to solid enrollment growth and effective execution of its Growth with Purpose strategy [1][8] Earnings & Revenue Discussion - Adjusted earnings per share (EPS) reached $1.23, surpassing the Zacks Consensus Estimate of $1.01 by 21.8% and increasing 51.4% from $1.17 in the same quarter last year [2] - Revenues totaled $393.2 million, exceeding the consensus mark of $374.1 million by 5.1% and reflecting an 8.4% year-over-year increase [2] - Total student enrollment rose 6.2% year over year to 81,772 students, surpassing the predicted enrollment of 77,607 [2] Segment Details - Chamberlain Segment: Revenues increased 8.6% to $153.6 million, with total student enrollment up 6.6% to 35,592 students. Adjusted operating income declined 10.8% to $29.6 million [4] - Walden Segment: Revenues grew 11.3% to $146.8 million, with total student enrollment rising 7.9% to 40,971 students. Adjusted operating income increased 3.9% to $30.2 million [5] - Medical and Veterinary Segment: Revenues grew 3.8% to $92.9 million, but total student enrollment declined 7.5% to 5,209 students [6] Liquidity & Cash Flow - As of December 31, 2023, cash and cash equivalents were $182.9 million, down from $273.7 million at the end of fiscal 2023. Long-term debt increased to $696.4 million [7] - Net cash provided by operating activities for the first six months of fiscal 2024 was $83.1 million, compared to $42.3 million in the prior year [7] Raised Fiscal 2024 Guidance - The company now expects revenues between $1,520 million and $1,560 million, an increase from the previous range of $1,470 million to $1,530 million. Adjusted EPS is projected to be between $4.55 and $4.75, up from $4.25 to $4.45 [8]