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LONDON, UK / ACCESSWIRE / March 05, 2018 / Active-Investors.com has just released a free earnings report on Adtalem Global Education Inc. (NYSE: ATGE) ("Adtalem"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ATGE. Adtalem reported its second quarter operating and financial results on February 06, 2018. The for-profit education Company surpassed earnings estimates and provided guidance for the upcoming quarter and fiscal year. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the three months ended December 31, 2017, Adtalem's revenue of $337.24 million increased 1.0% to $333.96 million in Q3 FY17. The Company's revenue lagged behind analysts' estimates of $434.9 million.
During Q2 FY18, Adtalem reported net loss of $81.16 million, or $1.33 per diluted share, compared to net income of $14.41 million, or $0.23 per diluted share, in Q2 FY17. The Company's reported quarter results included special items for restructuring charges of $2.6 million, related to workforce reductions and real estate consolidations at Carrington and Adtalem's home office, and tax expense of $101.2 million related to adoption of the Tax Cuts and Jobs Act of 2017.
Adtalem's net income from continuing operations excluding special items was $47.3 million, or $0.76 per diluted share, compared to $41.1 million, or $0.64 per diluted share, in Q4 2016. The Company's earnings beat Wall Street's estimates of $0.75 per share.
Adtalem Global Education's Segment Results
During Q2 FY18, the Medical and Healthcare segment's revenue edged up 0.9% to $203.30 million compared to $201.41 million in Q2 FY17, with growth at Chamberlain University partially offset by decreased revenue at the medical and veterinary schools. The segment's Chamberlain revenue grew 1.9% to $115.1 million in the reported quarter, while revenue for the medical and veterinary schools decreased 0.3% to $88.2 million on a y-o-y basis.
During Q2 FY18, Medical and Healthcare segment's operating income totaled $55.05 million, representing an increase of 5.6% compared to $52.15 million in Q2 FY17.
For Q2 FY18, the Professional Education division's revenue advanced 10.9% to $30.36 million compared to $27.37 million in Q2 FY17, driven by growth from Association of Certified Anti Money Laundering Specialists (ACAMS). In Q2 FY18, ACAMS' revenue soared 62% on a y-o-y basis with particularly strong results coming from Asia/Pacific region as well as solid gains generated through expanding partnerships in Europe.
The segment's operating income for the reported quarter was $2.2 million, up from $0.1 million in the prior year driven by revenue growth at ACAMS.
During Q2 FY18, the Technology and Business unit's revenue grew 2.4% to $75.13 million compared to $73.39 million in Q2 FY17. In the reported quarter, the segment operating income advanced 3.8% to $13.99 million compared to $13.48 million in the prior year's same quarter, as a result of revenue growth and cost efficiencies.
For Q2 FY18, the US Traditional Postsecondary segment's revenue fell 10.5% to $29.03 million compared to $32.45 million in Q2 FY17. The segment recorded operating loss of $5.8 million in the reported quarter compared to an operating loss of $6.3 million in the prior year's corresponding quarter. Excluding special items, the US Traditional Postsecondary segment reported an operating loss of $4.7 million for Q2 FY18 compared to an operating loss of $3.9 million in Q2 FY17.
Adtalem's operating cash flow was $49.6 million for H1 FY18 compared to $41.5 million in H1 FY17. The Company's cash and cash equivalents were $212.2 million as of December 31, 2017, compared to $197.9 million as of December 31, 2016. Adtalem's outstanding bank borrowings were $165.0 million as of December 31, 2017, compared to $225.0 million as of December 31, 2016
During Q2 FY18, the Company repurchased approximately 1.14 million shares of common stock.
For third quarter fiscal 2018, Adtalem is forecasting revenue to grow 3% to 4% on a y-o-y basis. Revenue growth within the Medical and Healthcare, Professional Education, and Technology and Business segments is expected to offset declining revenue within the US Traditional Postsecondary segment.
For fiscal 2018, Adtalem's revenue is expected to increase 1% to 2% on a y-o-y basis and earnings growth from continuing operations before special items is expected to be 10% to 12% compared to FY17. The Company's effective income tax rate on continuing operations for FY18 is expected to be in the range of 16% to 17%, before special items.
Stock Performance Snapshot
March 02, 2018 - At Friday's closing bell, Adtalem Global Education's stock advanced 2.51%, ending the trading session at $46.90.
Volume traded for the day: 405.11 thousand shares.
Stock performance in the last month – up 1.96%; previous three-month period – up 14.25%; past twelve-month period – up 44.53%; and year-to-date – up 11.53%
After last Friday's close, Adtalem Global Education's market cap was at $2.87 billion.
Price to Earnings (P/E) ratio was at 19.62.
The stock has a dividend yield of 0.77%.
The stock is part of the Services sector, categorized under the Education & Training Services industry. This sector was up 0.2% at the end of the session.
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