Key Takeaways Stride benefits from strong virtual K-12 and career learning demand, driving faster growth and margins.Strategic Education gains from employer-linked programs, but growth appears steadier and less dynamic.Valuation favors Stride with stronger ROE, rising estimates and a more attractive risk-reward profile.The shifting interests of students and parents toward online education alternatives, especially for career learning, have altered the perspective of the education market and the firms operati ...

Adtalem Global Education (ATGE) came out with quarterly earnings of $2.43 per share, beating the Zacks Consensus Estimate of $2.19 per share. This compares to earnings of $1.81 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +11.21%. A quarter ago, it was expected that this for-profit education company would post earnings of $1.57 per share when it actually produced earnings of $1.75, delivering a surprise of +11.46%.Over the ...

分组1 - K12 reported quarterly earnings of $2.5 per share, exceeding the Zacks Consensus Estimate of $2.33 per share, and showing an increase from $2.03 per share a year ago, representing an earnings surprise of +7.14% [1] - The company achieved revenues of $631.26 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.62% and up from $587.21 million year-over-year [2] - K12 has outperformed the S&P 500 with a share price increase of about 10.3% since the beginning of the year, compared to the S&P 500's gain of 1.5% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $2.37 on revenues of $635.84 million, and for the current fiscal year, it is $8.35 on revenues of $2.52 billion [7] - The Zacks Industry Rank indicates that the Schools industry is currently in the bottom 28% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Core Viewpoint - Lincoln Educational Services Corporation (LINC) shares experienced a significant increase of 6.3% to $26.71, supported by higher-than-average trading volume, reflecting positive investor sentiment and growth potential [1][2]. Company Performance - The stock's recent performance includes a 7.8% gain over the past four weeks, indicating a strong upward trend [1]. - LINC is projected to report quarterly earnings of $0.42 per share, representing a year-over-year increase of 35.5%, with expected revenues of $132.27 million, up 10.8% from the previous year [3]. Growth Drivers - The company's focus on expanding and diversifying service offerings, along with ongoing campus developments in locations like Houston and Levittown, is expected to enhance enrollment and revenue potential [2]. - The operational leverage from the Lincoln 10.0 hybrid model has contributed to positive growth trends, further boosting investor optimism [2]. Earnings Estimates - The consensus EPS estimate for LINC has remained unchanged over the last 30 days, suggesting stability in earnings expectations [4]. - Trends in earnings estimate revisions are closely correlated with near-term stock price movements, indicating that monitoring these trends is crucial for assessing future stock performance [3][4]. Industry Context - LINC holds a Zacks Rank of 1 (Strong Buy), positioning it favorably within the Zacks Schools industry [5]. - Another company in the same industry, Adtalem Global Education (ATGE), has also shown positive performance, with a 2.4% increase in its stock price and a 14.7% return over the past month [5].

Company Performance - American Public Education (APEI) shares have increased by 7.9% over the past month, reaching a new 52-week high of $40.76 [1] - The company has gained 7.4% since the beginning of the year, outperforming the Zacks Consumer Discretionary sector (2.6%) and the Zacks Schools industry (2.1%) [1] Earnings and Revenue - APEI has consistently beaten earnings estimates, reporting EPS of $0.3 against a consensus estimate of -$0.09 in its last earnings report [2] - For the current fiscal year, APEI is expected to post earnings of $2.22 per share on revenues of $642.33 million, with a year-over-year earnings growth of 106.05% [3] - For the next fiscal year, earnings are projected to be $2.75 per share on revenues of $687.89 million, representing a year-over-year change of 7.09% [3] Valuation Metrics - APEI currently trades at 18.3X current fiscal year EPS estimates, which is above the peer industry average of 14.8X [7] - The stock has a trailing cash flow multiple of 19.5X compared to the peer group's average of 12.6X, and a PEG ratio of 1.22 [7] Zacks Rank and Style Scores - APEI holds a Zacks Rank of 1 (Strong Buy) due to a solid earnings estimate revision trend [8] - The company has a Value Score of B, a Growth Score of A, and a Momentum Score of D, resulting in a combined VGM Score of A [6] Industry Comparison - The Schools industry is performing well, ranking in the top 42% of all industries, providing favorable conditions for APEI and its peers [12] - Legacy Education Inc. (LGCY), a peer in the industry, has a Zacks Rank of 2 (Buy) and has shown strong earnings performance, indicating a competitive landscape [10][11]

Core Viewpoint - The event facilitated sixth-grade students' understanding of junior high school life and promoted communication between the two schools [2] Group 1: Event Overview - Sixth-grade students from Xixiangtang Primary School visited Nanning Foreign Language School to experience junior high school life [2] - Students toured various facilities including the drone laboratory, school history museum, and mental health center [2] - A senior student shared personal growth experiences, and a lecture on the transition from primary to junior high was conducted [2] Group 2: Future Initiatives - Nanning Foreign Language School plans to continue organizing similar transition activities to support students in adapting to junior high school [2]

Group 1 - Strategic Education (STRA) shares increased by 7.9% to close at $84.77, following a trading session with notable volume, contrasting with a 2% loss over the past four weeks [1] - The company is expected to benefit from favorable trends in higher education and career-focused programs, supported by a diversified portfolio that includes IT and health programs, as well as a competency-based learning model [2] - STRA is projected to report quarterly earnings of $1.47 per share, reflecting a year-over-year increase of 15.8%, with revenues anticipated at $323.07 million, up 3.7% from the previous year [3] Group 2 - The consensus EPS estimate for STRA has remained unchanged over the last 30 days, indicating that stock price movements may not continue without trends in earnings estimate revisions [4] - STRA currently holds a Zacks Rank of 3 (Hold), while K12 (LRN), another company in the same industry, closed 4.6% higher at $67.6 and has returned 3.1% over the past month [5] - K12's consensus EPS estimate has increased by 1.4% to $2.33, representing a year-over-year change of 14.8%, and it currently holds a Zacks Rank of 2 (Buy) [6]

Core Viewpoint - K12 (LRN) is positioned to potentially continue its earnings-beat streak in the upcoming report, having surpassed earnings estimates consistently in recent quarters [1]. Earnings Performance - In the last reported quarter, K12 achieved earnings of $1.52 per share, exceeding the Zacks Consensus Estimate of $1.23 per share, resulting in a surprise of 23.58% [2]. - In the previous quarter, K12 was expected to report earnings of $1.83 per share but delivered $2.29 per share, leading to a surprise of 25.14% [2]. Earnings Estimates and Predictions - Recent estimates for K12 have been increasing, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat, especially given its favorable Zacks Rank [5][8]. - The Zacks Earnings ESP for K12 is currently +3.72%, suggesting that analysts have recently become more optimistic about the company's earnings prospects [8]. Statistical Insights - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced a positive surprise nearly 70% of the time, indicating a high probability of beating consensus estimates [6]. - The combination of K12's positive Earnings ESP and Zacks Rank 2 (Buy) suggests that another earnings beat may be imminent [8].

Core Insights - Stride, Inc. (LRN) is focusing on margin expansion and operational discipline despite facing technical issues and flat revenue per enrollment year-over-year [1][2] - The company reported an adjusted operating margin of 13.1%, up 250 basis points year-over-year, and an adjusted EBITDA margin of 17.5%, up 230 basis points [1] - Adjusted earnings per share (EPS) reached $1.52, compared to $1.09 in the same quarter last year, indicating strong operating leverage driven by enrollment growth and cost control [1] Revenue and Enrollment - Revenue per enrollment is expected to remain flat at approximately $9,677 for fiscal 2026 due to various factors including state mix and technical issues [2] - The company anticipates 10,000-15,000 fewer enrollments in fiscal 2026 due to platform implementation issues leading to higher withdrawals [2] Cost Management - Stride's selling, general and administrative (SG&A) expenses are growing at a slower rate than revenue, with expectations for SG&A as a percentage of revenues to decline in fiscal 2026 [3] - The SG&A metric decreased by 270 basis points year-over-year in the first quarter of fiscal 2026, primarily due to reduced bad debt expense and increased revenue leverage [3] Margin Sustainability - Flat revenue per enrollment does not indicate weak fundamentals; resolving platform issues and improving enrollment quality could sustain Stride's margin-focused strategy [4] - The company's ability to convert stable funding into expanding operating income suggests that disciplined execution may drive shareholder value in the near term [4] Earnings Estimates - Analysts have revised LRN's earnings estimates for fiscal 2026 and fiscal 2027 upward in the past 30 days, reflecting optimism about the company's recovery efforts [5] Stock Performance - Stride's shares have increased by 6.3% over the past month, outperforming the Zacks Schools industry and the broader Zacks Consumer Discretionary sector [7] Valuation - LRN stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 7.64, which is lower than competitors like Strategic Education, Inc. (12.47) and American Public Education, Inc. (16.95) [11][13]

Core Insights - Stride, Inc. (LRN) faced challenges in fiscal 2026 due to technical issues with its new technology platforms but still achieved double-digit revenue growth and strong profitability in Q1 [2][8] Financial Performance - Stride delivered an adjusted EPS of $1.52 in Q1 FY26 despite disruptions, indicating resilience in earnings [8] - The company's earnings estimates for fiscal 2026 and fiscal 2027 have been revised upward, reflecting a year-over-year improvement of 3.1% and 8.6%, respectively [6][7] Growth Drivers - The Career Learning segment was a key growth driver, with enrollment increasing by 20% year over year, benefiting from higher revenue per student and favorable margins [3][8] - Management views Career Learning as a long-term growth engine and a stabilizer during operational transitions [3] Future Outlook - Stride anticipates ongoing technology remediation efforts throughout fiscal 2026, with significant improvements expected in the coming months [4] - Although management has adjusted near-term enrollment growth expectations downward, they remain confident in returning to historical growth levels once systems stabilize [4] Market Position - Stride's stock is currently trading at a forward P/E ratio of 7.52, which is lower than competitors like Strategic Education (12.39) and American Public Education (17.21) [13][14] - In the past month, Stride's shares gained 3.9%, underperforming the Zacks Schools industry but outperforming the broader Zacks Consumer Discretionary sector and the S&P 500 Index [10]