Adtalem Global Education Raises FY25 Outlook After Solid Q2 And Enrollment Boom; Stock Spikes

Adtalem Global Education Inc ATGE shares are trading higher in premarket on Friday after the second-quarter earnings result.

The company reported second-quarter sales growth of 13.9% year-on-year to $447.73 million, beating the consensus estimate of $429.27 million.

Total student enrollment increased 11.6% to 91,264. Adjusted EPS of $1.81 beat the consensus estimate of $1.37.

Chamberlain revenue jumped 17.9%, Walden increased 16.7% and Medical and Veterinary climbed 2.8%.

Operating income for the quarter rose 77% to $103.87 million, with an operating margin of 23.2%. 

The company held $195.4 million in cash and equivalents as of December 31, 2024.

The company repurchased $38 million of shares, with $140 million remaining under a $300 million Board authorized share repurchase program through January 2027.

“Growth with Purpose, our operational excellence strategy, has delivered exceptional results—marked by six straight quarters of enrollment growth—while advancing our mission to develop skilled healthcare professionals,” said chairman and chief executive officer Steve Beard.

Outlook: Adtalem raised FY25 adjusted EPS outlook from $5.75 – $5.95 to $6.10 – 6.30 versus an estimate of $5.89.

The company also raised FY25 sales guidance from $1.69 billion – $1.73 billion to $1.73 billion – $1.76 billion, against an estimate of $1.72 billion.

Price Action: ATGE shares are trading higher by 7.40% at $110.00 in premarket at the last check Friday.

Photo via Shutterstock.