Child care and education company Bright Horizons (NYSE: BFAM) will be reporting earnings this Tuesday after market close. Here’s what you need to know.
Bright Horizons beat analysts’ revenue expectations last quarter, reporting revenues of $733.7 million, up 8.8% year on year. It was a slower quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and full-year revenue guidance slightly missing analysts’ expectations.
Is Bright Horizons a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Bright Horizons’s revenue to grow 7% year on year, in line with the 6.9% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Bright Horizons rarely misses Wall Street’s revenue estimates.
Looking at Bright Horizons’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Laureate Education delivered year-on-year revenue growth of 15.4%, beating analysts’ expectations by 2.2%, and Strategic Education reported flat revenue, falling short of estimates by 1.2%. Laureate Education traded down 1.1% following the results while Strategic Education was also down 12.1%.
Read our full analysis of Laureate Education’s results here and Strategic Education’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 7% on average over the last month. Bright Horizons is down 3.4% during the same time and is heading into earnings with an average analyst price target of $97.11 (compared to the current share price of $81.50).
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