Why did GHC's Q3 earnings fall short of forecasts?

Graham Holdings Co (GHC) reported quarterly adjusted earnings of $22.58 per share for the quarter ended December 31, 2024, which was higher than the same quarter last year, when the company reported EPS of $10.94. However, the reported revenue of $1.25 billion for the quarter missed analysts' estimates of $1.27 billion. The decline in revenue can be attributed to several factors: 1. **Decline in Education Segment Revenue**: Despite overall revenue growth, the education segment experienced a decline due to a $22.9 million impairment charge related to an acquisition. This impairment charge negatively impacted the segment's performance, contributing to the slight miss on revenue expectations. 2. **Challenges in Manufacturing and Healthcare**: The manufacturing segment faced challenges, while the healthcare segment, although growing, was not enough to fully offset the impacts of the education segment's decline and the manufacturing segment's challenges. In summary, GHC's Q3 earnings fell short of forecasts primarily due to a combination of factors including a decline in education segment revenue and challenges in manufacturing and healthcare segments.