Solid Enrollment Growth Aids Adtalem's (ATGE) Performance

Core Insights - Adtalem Global Education Inc. is experiencing strong enrollment growth and implementing cost-saving initiatives, which are positively impacting its financial performance [1][2][3] Enrollment Growth - In Q2 fiscal 2024, Adtalem's revenues rose by 8.4% year over year to $393.2 million, driven by increased demand at Chamberlain University and Walden University [2] - Total student enrollment at Chamberlain University grew by 6.6% year over year to 35,592 students, supported by growth in nursing programs [2] - Walden University saw a 7.9% year-over-year increase in enrollment to 40,971 students, fueled by growth in both healthcare and non-healthcare programs [2] Cost Control Initiatives - To mitigate rising costs, Adtalem has implemented cost-saving measures such as workforce reduction, centralized operations, and managing discretionary spending [3] - The company reported an adjusted EPS of $1.23 for Q2 fiscal 2024, reflecting a 51.4% increase year over year, attributed to lower restructuring costs and revenue growth [3] Strategic Partnerships - Adtalem is focusing on strategic partnerships with corporations, hospitals, and government agencies to develop educational programs that meet the needs of employees and employers [4][5] - The company is advancing partnerships with local health systems in major markets through its Clinical Return Home program [5] Long-term Growth Prospects - Adtalem has a long-term earnings growth rate of 15% and aims for revenue growth of 10.2% and sales growth of 6.4% year over year for fiscal 2024 [1][6] - For fiscal 2024, the company expects revenues between $1,520 million and $1,560 million, and adjusted earnings per share in the range of $4.55 to $4.75 [6] - Revenue growth for fiscal 2025 is anticipated to be between 4-6%, while adjusted EPS growth is projected at 10-15% [6]