Adtalem (ATGE) Gives Long-Term Revenue & Adjusted EPS Targets
Adtalem Global Education Inc. ATGE unveiled its long-term growth strategy and financial targets through fiscal 2026. Adtalem’s executive leadership team will discuss the three-year Growth with Purpose strategy at its Chamberlain University Chicago campus at an Investor Day, on Jun 21.
For fiscal 2024, revenues and adjusted earnings per share (EPS) are expected to range within $1,460-$1,520 million and $4.15-$4.40, respectively. The growth rate of revenues and adjusted EPS for fiscal 2025 is anticipated to be in the 4-6% and 10-15% ranges, respectively. The same for fiscal 2026 is projected to fall between 5% and 8% and 13% and 18%, respectively.
The company has reaffirmed its fiscal 2023 revenue and adjusted EPS guidance of $1,400-$1,450 million and $4.05-$4.20, respectively.
Strategic Initiatives to Drive Performance
In the long run, ATGE is to drive productivity in its existing footprint with continued investments, and response to demand with innovative programs and learning modalities. Also, it engages in various value-creating activities, like marketing, enrollment, conversion and retention, with an unwavering focus on quality, strong academic outcomes and student success.
This leading healthcare education provider has undertaken some initiatives to sustain and increase student persistence and satisfaction, enabled technology and leveraged its scale, data and assets. Also, it has worked on strategies to strengthen partnerships between institutions and employers to deliver practice-ready professionals to the healthcare system at scale.
Adtalem’s healthcare and international institutions have shown significant improvements in revenues and profitability since fiscal 2013. It expects demand for healthcare professionals to outpace supply in the future. The company is on track to capitalize on this supply-demand imbalance in nursing and the broader healthcare industry by investing in new programs in markets with the maximum demand. It is optimistic about the demand trend in the medical and healthcare segments from both students and employees.
Shares of this Zacks Rank #2 (Buy) company have gained 8.5% in the year-to-date period against the industry’s 3% growth. The above-mentioned initiatives and the recent move will further aid its share price performance and profitability going forward.
Other Stocks to Consider
Some other top-ranked stocks from the Zacks Consumer Discretionary sector are Royal Caribbean Cruises Ltd. RCL, Skechers U.S.A., Inc. SKX and Marriott International, Inc. MAR, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
RCL has a trailing four-quarter earnings surprise of 26.4%, on average. The stock has surged 93.7% in the year-to-date period.
The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) indicates a rise of 48.5% and 162.5%, respectively, from the year-ago period’s levels.
SKX delivered a trailing four-quarter earnings surprise of 18.8%, on average. Shares of the company have increased 21.5% in the year-to-date period.
The Zacks Consensus Estimate for SKX’s 2023 sales and EPS indicates a rise of 7.7% and 31.5%, respectively, from the year-ago period’s levels.
MAR has a trailing four-quarter earnings surprise of 8%, on average. Shares of the company have increased 17.8% in the year-to-date period.
The Zacks Consensus Estimate for MAR’s 2023 sales and EPS indicates a rise of 12.9% and 25.4%, respectively, from the year-ago period’s levels.
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