How did ATGE's Q3 2025 EPS forecast compare to past trends?
4/11/2025 01:30pm
Adtalem Global Education Inc.'s (ATGE) Q3 2025 EPS forecast of $1.70 reflects a company that is expected to continue its trend of robust growth and profitability. Several key points support this conclusion:
1. **Consistent Growth**: Adtalem Global Education has demonstrated a strong track record of earnings growth. In Q3 2023, the company's EPS was $0.91, and by Q3 2024, it had increased to $1.50. The forecasted EPS of $1.70 for Q3 2025 indicates a continuation of this upward trend.
2. **Increase in Revenue**: Alongside the EPS growth, Adtalem Global Education has also seen a rise in revenue. The company's revenue grew by 12.4% in Q3 2024 compared to the same quarter last year. This increase in revenue contributes to the higher EPS forecast for Q3 2025.
3. **Positive Analyst Ratings**: The consensus among research analysts is positive, with several rating upgrades and price target increases. For instance, Barrington Research has an "Outperform" rating and a $90.00 price objective. Zacks Research also has an optimistic outlook, raising its Q4 2025 earnings estimate to $1.58 EPS.
4. **Strong Financial Performance**: Adtalem Global Education's recent financial performance supports the EPS forecast. The company reported a strong Q3 2024 with a 11.8% increase in revenue and a 32.7% increase in adjusted earnings per share. The raised guidance for fiscal year 2024 revenue and adjusted EPS indicates confidence in continued strong performance.
5. **Institutional Confidence**: Institutional investors have shown confidence in Adtalem Global Education, with several recent transactions indicating increased holdings. For example, LSV Asset Management significantly increased its holdings, and Peregrine Asset Advisers Inc. acquired a new stake. This institutional confidence can be a positive indicator for the company's future performance.
In conclusion, Adtalem Global Education's Q3 2025 EPS forecast of $1.70 is in line with the company's historical trend of earnings growth and is supported by positive analyst ratings, strong financial performance, and increased institutional confidence.