Lincoln Educational Services Shares Pop Post Q3 Results

Lincoln Educational Services Corp LINC reported third-quarter FY22 sales growth of 3.1% year-on-year to $91.81 million, beating the consensus of $88.89 million.
The revenue increase was driven by a 5.9% increase in average revenue per student.
Educational services and facilities expenses increased 4.8% to $39.9 million.
Segment Results: Transportation and skilled trades segment revenue increased 3.7%, Healthcare and other professions revenue rose 1.6%.
The operating margin was 5.3%, and operating income for the quarter fell 15.1% to $4.8 million.
The company held $69.6 million in cash and equivalents as of September 30, 2022.
Adjusted EBITDA decreased 12.7% to $7.4 million.
EPS of $0.10 was in-line with the analyst consensus.
CEO Scott Shaw said, "While enrollments and graduation rates remained strong across our campuses, we did experience the decline in student starts we expected during the third quarter."
The company repurchased 0.7 million shares for $4.2 million in the quarter.
Outlook, reiterated: Lincoln sees FY22 sales of $340 million - $350 million, against the consensus of $345.23 million.
The company expects Student start decline / growth of -3% to 3%. Adjusted EBITDA of $25 million - $30 million.
Price Action: LINC shares are trading higher by 9.08% at $6.49 on the last check Monday.

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