Latest news with #LincolnEducational
Yahoo
2 days ago
- Business
- Yahoo
Q1 Earnings Highlights: Lincoln Educational (NASDAQ:LINC) Vs The Rest Of The Education Services Stocks
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let's have a look at Lincoln Educational (NASDAQ:LINC) and its peers. A whole industry has emerged to address the problem of rising education costs, offering consumers alternatives to traditional education paths such as four-year colleges. These alternative paths, which may include online courses or flexible schedules, make education more accessible to those with work or child-rearing obligations. However, some have run into issues around the value of the degrees and certifications they provide and whether customers are getting a good deal. Those who don't prove their value could struggle to retain students, or even worse, invite the heavy hand of regulation. The 8 education services stocks we track reported a very strong Q1. As a group, revenues beat analysts' consensus estimates by 2.3% while next quarter's revenue guidance was in line. Thankfully, share prices of the companies have been resilient as they are up 8.4% on average since the latest earnings results. Established in 1946, Lincoln Educational (NASDAQ:LINC) is a provider of specialized technical training in the United States, offering career-oriented programs to provide practical skills required in the workforce. Lincoln Educational reported revenues of $117.5 million, up 13.7% year on year. This print exceeded analysts' expectations by 2%. Overall, it was an exceptional quarter for the company with a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. 'We delivered a strong start to 2025 with exceptional student start growth, double digit revenue growth and a 63% increase in adjusted EBITDA,' said Scott Shaw, President and CEO. Interestingly, the stock is up 9.1% since reporting and currently trades at $22.82. Is now the time to buy Lincoln Educational? Access our full analysis of the earnings results here, it's free. Formed through the merger of Strayer Education and Capella Education in 2018, Strategic Education (NASDAQ:STRA) is a career-focused higher education provider. Strategic Education reported revenues of $303.6 million, up 4.6% year on year, outperforming analysts' expectations by 1%. The business had an exceptional quarter with an impressive beat of analysts' EPS estimates and a solid beat of analysts' adjusted operating income estimates. The market seems happy with the results as the stock is up 6% since reporting. It currently trades at $85.06. Is now the time to buy Strategic Education? Access our full analysis of the earnings results here, it's free. Founded in 1949, Grand Canyon Education (NASDAQ:LOPE) is an educational services provider known for its operation at Grand Canyon University. Grand Canyon Education reported revenues of $289.3 million, up 5.3% year on year, exceeding analysts' expectations by 0.8%. It was a satisfactory quarter as it also posted EPS guidance for next quarter exceeding analysts' expectations. The stock is flat since the results and currently trades at $185.47. Read our full analysis of Grand Canyon Education's results here. Formerly known as Career Education Corporation, Perdoceo Education (NASDAQ:PRDO) is an educational services company that specializes in postsecondary education. Perdoceo Education reported revenues of $213 million, up 26.6% year on year. This print topped analysts' expectations by 2.4%. Overall, it was a strong quarter as it also logged EPS guidance for next quarter exceeding analysts' expectations. Perdoceo Education achieved the fastest revenue growth among its peers. The stock is up 27.5% since reporting and currently trades at $32.07. Read our full, actionable report on Perdoceo Education here, it's free. Founded in 1965, Universal Technical Institute (NYSE: UTI) is a leading provider of technical training programs, specializing in automotive, diesel, collision repair, motorcycle, and marine technicians. Universal Technical Institute reported revenues of $207.4 million, up 12.6% year on year. This number beat analysts' expectations by 2.8%. It was an exceptional quarter as it also recorded a solid beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. Universal Technical Institute delivered the highest full-year guidance raise among its peers. The stock is up 11.1% since reporting and currently trades at $32.90. Read our full, actionable report on Universal Technical Institute here, it's free. In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump's presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Yahoo
04-06-2025
- Business
- Yahoo
LINC Q1 Earnings Call: Student Growth and New Campus Investments Offset Revenue Miss
Education company Lincoln Educational (NASDAQ:LINC) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 13.7% year on year to $117.5 million. Its non-GAAP profit of $0.11 per share was significantly above analysts' consensus estimates. Is now the time to buy LINC? Find out in our full research report (it's free). Revenue: $117.5 million (13.7% year-on-year growth) Adjusted EPS: $0.11 vs analyst estimates of $0.04 (significant beat) Adjusted Operating Income: $3.41 million vs analyst estimates of -$1.41 million (2.9% margin, significant beat) EBITDA guidance for the full year is $60.5 million at the midpoint, above analyst estimates of $56.89 million Operating Margin: 2.9%, up from -0.4% in the same quarter last year Enrolled Students: 15,904, up 2,103 year on year Market Capitalization: $733.3 million Lincoln Educational's first quarter results were shaped by strong student enrollment growth, the expansion of its hybrid teaching model, and targeted campus investments. CEO Scott Shaw highlighted the impact of the Lincoln 10.0 hybrid model, which blends online and hands-on instruction to offer flexibility and improved graduation rates. The company benefited from higher student starts, particularly in transportation and skilled trades, while phasing out lower-demand programs. Marketing efficiencies also contributed, as cost per student start fell. Despite a shortfall in revenue against Wall Street expectations, management attributed double-digit revenue growth to sustained demand for skilled trades training and operational improvements at newly opened and relocated campuses. For the remainder of the year, management expects continued momentum driven by additional program replications, the opening of new campuses, and ongoing efficiency gains. CFO Brian Meyers noted that the company's raised full-year EBITDA guidance reflects confidence in operational leverage and enrollment trends. Shaw pointed to broader national trends favoring skilled trades and highlighted that regulatory changes and government initiatives are expected to support demand. He explained, 'Our growth strategy is simple. We will continue to expand our network of schools by replicating our most in-demand programs at our existing campuses while building new campuses in new and existing markets.' The company is also closely monitoring regulatory developments and expects minimal impact from tariffs or economic headwinds in the near term. Management attributed the quarter's results to strong demand for skilled trade programs, successful campus expansion, and improved marketing efficiency. The company also benefited from leveraging its hybrid teaching model and optimizing its program mix. Hybrid teaching model success: The Lincoln 10.0 approach, combining online learning with hands-on instruction, increased student flexibility and graduation rates. This model also drove operational efficiencies, helping to control costs and support margin expansion. Strong skilled trades enrollment: Student starts in transportation and skilled trades programs rose over 30%, fueled by program replication at more campuses and rising national interest in trade careers. This offset enrollment declines in discontinued nursing, massage therapy, and culinary programs. Campus development momentum: The opening of new campuses, including the relocation of Nashville and the East Point campus in Atlanta, contributed to enrollment growth and are expected to deliver stronger financial returns as new programs come online. Marketing efficiency gains: Management cited a 20% year-on-year reduction in cost per student start, achieved through improved lead generation and greater referral activity. These savings supported margin improvement and are expected to persist, though perhaps at a lesser rate. Program mix optimization: The company continued to phase out lower-demand programs and invest in high-interest, high-return offerings, such as welding and electrical training, to align with employer needs and maximize student outcomes. Lincoln Educational's outlook is anchored in continued expansion of its program offerings, new campus openings, and operational leverage, while navigating regulatory changes and shifting market preferences. Accelerated campus expansion: The company plans to open three new campuses in 2025 and is exploring further opportunities in underserved markets. Management expects these sites to contribute significantly to future revenue and EBITDA once fully operational. Program replication and innovation: Ongoing rollout of in-demand programs, like electrical and welding, at existing and new campuses is expected to drive enrollment growth. Management believes that aligning offerings with labor market needs will sustain demand. Regulatory and economic environment: Leadership is monitoring changes in federal education policy and workforce initiatives, anticipating that government support for skilled trades will continue to benefit demand. Management also expects minimal impact from tariffs and macroeconomic uncertainty in the near term. In future quarters, the StockStory team will be tracking (1) the ramp-up of new campus openings and the contribution of new programs to enrollment, (2) the sustainability of marketing efficiencies and operating leverage, and (3) progress on regulatory approvals for program expansions. We will also monitor how phasing out low-demand programs and the national focus on skilled trades shape student demand and financial outcomes. Lincoln Educational currently trades at a forward EV-to-EBITDA ratio of 11.8×. In the wake of earnings, is it a buy or sell? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. 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Yahoo
12-05-2025
- Business
- Yahoo
Lincoln Educational (NASDAQ:LINC) Beats Q1 Sales Targets, Stock Soars
Education company Lincoln Educational (NASDAQ:LINC) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 13.7% year on year to $117.5 million. The company's full-year revenue guidance of $490 million at the midpoint came in 1.2% above analysts' estimates. Its GAAP profit of $0.06 per share was significantly above analysts' consensus estimates. Is now the time to buy Lincoln Educational? Find out in our full research report. Revenue: $117.5 million vs analyst estimates of $115.9 million (13.7% year-on-year growth, 1.4% beat) EPS (GAAP): $0.06 vs analyst estimates of -$0.04 (significant beat) Adjusted EBITDA: $10.64 million vs analyst estimates of $7.21 million (9.1% margin, 47.4% beat) The company lifted its revenue guidance for the full year to $490 million at the midpoint from $485 million, a 1% increase EBITDA guidance for the full year is $60.5 million at the midpoint, above analyst estimates of $56.89 million Operating Margin: 2.9%, up from -0.4% in the same quarter last year Free Cash Flow was -$28.27 million compared to -$16.62 million in the same quarter last year Enrolled Students: 15,904, up 2,103 year on year Market Capitalization: $660.9 million 'We delivered a strong start to 2025 with exceptional student start growth, double digit revenue growth and a 63% increase in adjusted EBITDA,' said Scott Shaw, President and CEO. Established in 1946, Lincoln Educational (NASDAQ:LINC) is a provider of specialized technical training in the United States, offering career-oriented programs to provide practical skills required in the workforce. Reviewing a company's long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Lincoln Educational grew its sales at a 10.1% annual rate. Although this growth is acceptable on an absolute basis, it fell short of our standards for the consumer discretionary sector, which enjoys a number of secular tailwinds. We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Lincoln Educational's annualized revenue growth of 13.4% over the last two years is above its five-year trend, but we were still disappointed by the results. We can better understand the company's revenue dynamics by analyzing its number of enrolled students, which reached 15,904 in the latest quarter. Over the last two years, Lincoln Educational's enrolled students averaged 9.5% year-on-year growth. Because this number is lower than its revenue growth during the same period, we can see the company's monetization has risen. This quarter, Lincoln Educational reported year-on-year revenue growth of 13.7%, and its $117.5 million of revenue exceeded Wall Street's estimates by 1.4%. Looking ahead, sell-side analysts expect revenue to grow 10.6% over the next 12 months, a slight deceleration versus the last two years. This projection doesn't excite us and indicates its products and services will see some demand headwinds. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Lincoln Educational's operating margin has shrunk over the last 12 months and averaged 6.3% over the last two years. The company's profitability was mediocre for a consumer discretionary business and shows it couldn't pass its higher operating expenses onto its customers. In Q1, Lincoln Educational generated an operating profit margin of 2.9%, up 3.3 percentage points year on year. This increase was a welcome development and shows it was more efficient. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Lincoln Educational's EPS grew at a remarkable 17.4% compounded annual growth rate over the last five years, higher than its 10.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. In Q1, Lincoln Educational reported EPS at $0.06, up from negative $0.01 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Lincoln Educational to perform poorly. Analysts forecast its full-year EPS of $0.39 will hit $0.42. We were impressed by how significantly Lincoln Educational blew past analysts' revenue, EPS, and EBITDA expectations this quarter. We were also excited it lifted its full-year guidance. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 6.9% to $22.36 immediately following the results. Lincoln Educational had an encouraging quarter, but one earnings result doesn't necessarily make the stock a buy. Let's see if this is a good investment. When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-05-2025
- Business
- Yahoo
1 of Wall Street's Favorite Stock That Stand Out and 2 to Steer Clear Of
Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it's important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts. Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. Keeping that in mind, here is one stock where Wall Street's positive outlook is supported by strong fundamentals and two where analysts may be overlooking some important risks. Consensus Price Target: $22.80 (24.9% implied return) Established in 1946, Lincoln Educational (NASDAQ:LINC) is a provider of specialized technical training in the United States, offering career-oriented programs to provide practical skills required in the workforce. Why Are We Cautious About LINC? Number of enrolled students has disappointed over the past two years, indicating weak demand for its offerings Negative free cash flow raises questions about the return timeline for its investments Diminishing returns on capital suggest its earlier profit pools are drying up Lincoln Educational is trading at $18.26 per share, or 11x forward EV-to-EBITDA. If you're considering LINC for your portfolio, see our FREE research report to learn more. Consensus Price Target: $92.99 (17.7% implied return) Founded in 1986 as a bridge between technology and financial services, SS&C Technologies (NASDAQ:SSNC) provides software and software-enabled services that help financial firms and healthcare organizations automate complex business processes. Why Do We Think Twice About SSNC? Muted 4.9% annual revenue growth over the last five years shows its demand lagged behind its business services peers Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 3 percentage points Below-average returns on capital indicate management struggled to find compelling investment opportunities At $78.99 per share, SS&C trades at 12.9x forward P/E. Read our free research report to see why you should think twice about including SSNC in your portfolio, it's free. Consensus Price Target: $552.84 (36.6% implied return) With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE:UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care. Why Is UNH a Top Pick? Unparalleled scale of $410.1 billion in revenue enables it to spread administrative costs across a larger membership base Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue ROIC punches in at 21.6%, illustrating management's expertise in identifying profitable investments UnitedHealth's stock price of $404.83 implies a valuation ratio of 13.1x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-04-2025
- Business
- Yahoo
Lincoln Educational (LINC): Buy, Sell, or Hold Post Q4 Earnings?
Lincoln Educational currently trades at $17.36 and has been a dream stock for shareholders. It's returned 594% since April 2020, blowing past the S&P 500's 88.4% gain. The company has also beaten the index over the past six months as its stock price is up 32.1% thanks to its solid quarterly results. Is now the time to buy Lincoln Educational, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it's free. Despite the momentum, we don't have much confidence in Lincoln Educational. Here are three reasons why you should be careful with LINC and a stock we'd rather own. Revenue growth can be broken down into changes in price and volume (for companies like Lincoln Educational, our preferred volume metric is enrolled students). While both are important, the latter is the most critical to analyze because prices have a ceiling. Lincoln Educational's enrolled students came in at 15,138 in the latest quarter, and over the last two years, averaged 7.2% year-on-year growth. This performance was underwhelming and suggests it might have to lower prices or invest in product improvements to accelerate growth, factors that can hinder near-term profitability. Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. While Lincoln Educational posted positive free cash flow this quarter, the broader story hasn't been so clean. Over the last two years, Lincoln Educational's demanding reinvestments to stay relevant have drained its resources, putting it in a pinch and limiting its ability to return capital to investors. Its free cash flow margin averaged negative 8.2%, meaning it lit $8.19 of cash on fire for every $100 in revenue. A company's ROIC, or return on invested capital, shows how much operating profit it makes compared to the money it has raised (debt and equity). We like to invest in businesses with high returns, but the trend in a company's ROIC is what often surprises the market and moves the stock price. Over the last few years, Lincoln Educational's ROIC has unfortunately decreased significantly. We like what management has done in the past, but its declining returns are perhaps a symptom of fewer profitable growth opportunities. Lincoln Educational isn't a terrible business, but it isn't one of our picks. With its shares topping the market in recent months, the stock trades at 10.3× forward EV-to-EBITDA (or $17.36 per share). This valuation tells us a lot of optimism is priced in - you can find better investment opportunities elsewhere. We'd recommend looking at one of our all-time favorite software stocks. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
