Is LAUR's Q1 2025 forecast a buying signal?
4/10/2025 06:19pm
**Laureate Education's (LAUR) Q1 2025 forecast does not present a clear buying signal.** Here's why:
1. **Revenue Growth Concerns**: While LAUR has shown strong revenue growth in the past, the forecast for Q1 2025 indicates a stall in revenue growth. Analysts expect revenue to remain flat to slightly decline on an as-reported basis, which is a deceleration from the 12.3% annualized growth seen in the past two years. This suggests that the company's products and services may face demand challenges, which could be a red flag for investors.
2. **Enrollment Growth**: The company's enrolled students have shown a weak year-on-year growth of 6.2% over the last two years, which is underwhelming. This indicates that LAUR may need to invest in product improvements or consider pricing strategies to accelerate growth, which could impact near-term profitability.
3. **Currency Headwinds**: LAUR anticipates significant foreign currency translation headwinds in 2025 due to the volatility in the Mexican peso. This could negatively affect the company's financial performance, which may be a concern for investors.
4. **Strategic Expansion**: Despite these challenges, LAUR has made strategic expansions in Mexico and Peru, which have been successful in increasing revenue and enrollments. The company's strong margin profile and return on capital to shareholders in 2024 are positive points.
In conclusion, while there are positive aspects to LAUR's business, the Q1 2025 forecast does not provide a strong buying signal due to the expected stall in revenue growth and the potential impact of currency headwinds. Investors should carefully consider these factors before making investment decisions.