Stock to Watch: Adtalem Global Education Inc.’s (NYSE: ATGE)

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On Tuesday, Adtalem Global Education Inc.’s (NYSE: ATGE) shares price traded between $47.17 and $48.05 during the last trading session upbeat/downbeat with +1.38% at $47.85. Over the one year trading period, the stock has a peak price of $ 58.80 and its down is recorded at $42.45.

Adtalem Global Education Inc. (ATGE) recently stated academic, operating and financial results for its first quarter fiscal 2019 ended September 30, 2018.

“Fiscal year 2019 is off to a good start as we delivered solid new student enrollment growth,” stated Lisa Wardell, president and CEO of Adtalem. “We are focused on growth opportunities in and across our verticals, while maintaining an operational focus through our portfolio management approach and effective cost management. Our short and long-term priorities are aligned to support our students in the achievement of outstanding outcomes, while delivering sustainable revenue and EPS growth over the long term.”

Financial and Operating Highlights

Selected operating and financial data for the three months ended September 30, 2018:

  • Adtalem new student enrollment raised 19.7 percent and total student enrollment raised 3.6 percent from the previous year
  • Revenue of $284.2M reduced 3.1 percent contrast to the previous year
  • Operating loss from continuing operations was $2.5M contrast to operating income from continuing operations of $29.9M in the previous year; operating income from continuing operations not including special items was $37.0M contrast to $31.0M in the previous year
  • Net loss was $9.5M contrast to net income of $12.8M in the previous year; net income from continuing operations not including special items was $27.3M contrast to $26.2M in the previous year
  • Diluted loss per share was $0.16 contrast to earnings per share of $0.20 in the previous year; diluted earnings per share from continuing operations not including special items was $0.45 contrast to $0.41 in the previous year
  • About 1.2M shares of ordinary stock were repurchased during the first quarter of fiscal 2019 at an average purchase price of $47.94 for a total of $59.2M

Fiscal 2019 first quarter results contained total pre-tax restructuring charges of $39.5M, of which $37.8M were non-cash charges, primarily related to the closing of the Ross University School of Medicine (RUSM) campus in Dominica and relocating to Barbados.

Adtalem signed contracts to transfer ownership of DeVry University and Carrington College during the second and fourth quarter of fiscal 2018, respectively. Both divestitures are predictable to be completed by calendar year end 2018 and are subject to certain terms and conditions, including regulatory and accredit or authorization. As a result of these transactions, DeVry University and Carrington College are classified as discontinued operations. Adtalem recorded an after-tax loss from discontinued operations of $4.7M in the first quarter of fiscal 2019.

Adtalem Outlook

Fiscal 2019 second quarter revenue is predictable to raise about 3 to 4 percent contrast to the previous year. Second quarter operating costs before special items are predictable to be up 5 to 6 percent contrast to the previous year. The second quarter outlook assumes an exchange rate of 3.75 Brazilian Real to the U.S. Dollar.

Fiscal 2019 full year revenue is predictable to raise about 4 percent contrast to the previous year. The effective income tax rate is predictable to be in the 17 to 18 percent range. Earnings per share from continuing operations before special items are predictable to grow in the 2 to 3 percent range contrast to the previous year. The full year outlook assumes an exchange rate of 3.70 Brazilian Real to the U.S. Dollar. Full year capital spending is predictable to be in the $70 to $75M range, including about $25 to $30M for the relocation of RUSM to Barbados. Adtalem’s outlook excludes potential charges related to restructuring plans and the pending ownership transfer of DeVry University and Carrington College.

 

ATGE price volatility for a month noted as 2.89% however its price volatility for a week documented as 1.92%. The corporation holds 58.76 million outstanding shares and its 58.11 million shares were floated in the market. The stock established a positive trend of 0.74% in last week and indicated fall of -8.42% in previous month.

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