Bright Horizons Earnings: What To Look For From BFAM

StockStory
02-12
Bright Horizons Earnings: What To Look For From BFAM

Child care and education company Bright Horizons (NYSE:BFAM) will be reporting results tomorrow after market hours. Here’s what to expect.

Bright Horizons beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $719.1 million, up 11.4% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ organic revenue estimates.

Is Bright Horizons a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Bright Horizons’s revenue to grow 9% year on year to $670.9 million, slowing from the 16.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.91 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Bright Horizons has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Bright Horizons’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Adtalem delivered year-on-year revenue growth of 13.9%, beating analysts’ expectations by 4.7%, and Universal Technical Institute reported revenues up 15.3%, topping estimates by 3.9%. Adtalem traded up 4.6% following the results while Universal Technical Institute was also up 3.8%.

Read our full analysis of Adtalem’s results here and Universal Technical Institute’s results here.

There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 2.7% on average over the last month. Bright Horizons is up 2.7% during the same time and is heading into earnings with an average analyst price target of $133.11 (compared to the current share price of $117.99).

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