Adtalem Global Education Posts In-Line EPS, Issues Upbeat Guidance

Shares of Adtalem Global Education Inc. (ATGE) gained 7.2% in Thursday’s extended trading session after the company issued Fiscal 2022 guidance well above analysts’ expectations.

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The leading provider of workforce solutions reported fiscal Q4 earnings in line with expectations but missed revenue estimates.

Adjusted earnings came in at $0.70 per share, rising from adjusted earnings of $0.58 per share in the prior-year period.

Revenues jumped 7.9% year-over-year to $280.4 million but fell slightly short of consensus estimates of $284.38 million.

Adtalem CEO Lisa Wardell commented, “Our strong fourth-quarter performance and the completion of the Walden acquisition further position us as a leading healthcare education provider with market-leading scale and breadth.”

Wardell further added, “We took advantage of strong demand for our programs and offerings in the quarter, and we look forward to demonstrating the significant value Walden will bring to our students, employer partners and shareholders.” (See Adtalem Global Education stock charts on TipRanks)

Looking forward, the company provided its full-year guidance for Fiscal 2022. The company forecasts adjusted earnings in the range of $4.20 to $4.45 per share, while the consensus estimate is pegged at $3.30 per share.

Revenues are projected to be in the range of $1.685 billion to 1.735 billion, versus analysts’ expectations of $1.2 billion.

Barrington analyst Alexander Paris recently reiterated a Buy rating on the stock with a price target of $50 (44.5% upside potential).

Overall, the stock has a Moderate Buy consensus rating based on 1 Buy and 1 Hold. The average Adtalem Global Education price target of $44.50 implies 28.6% upside potential from current levels.