KinderCare Learning Companies reported Q2 earnings of 22 cents per share, missing analyst consensus of 26 cents per share. Sales of $700.11 million also missed estimates of $705.65 million. The company narrowed its FY2025 adjusted EPS guidance to $0.77-$0.82 and sales guidance to $2.75-$2.8 billion. Shares dipped 22.1% to $7.64. Analysts Baird, BMO Capital, Goldman Sachs, and Morgan Stanley made changes to their price targets on KinderCare Learning following the earnings announcement.
KinderCare Learning Companies, Inc. (KLC) reported weaker-than-expected earnings for the second quarter on Tuesday. The company posted quarterly earnings of 22 cents per share, which missed the analyst consensus estimate of 26 cents per share. Additionally, quarterly sales of $700.11 million missed the analyst consensus estimate of $705.65 million.
The company narrowed its FY2025 adjusted EPS guidance from $0.75-$0.85 to $0.77-$0.82 and also narrowed sales guidance from $2.750 billion-$2.850 billion to $2.750 billion-$2.800 billion. Chief Executive Officer Paul Thompson attributed the results to softer-than-anticipated enrollment trends late in the quarter and emphasized the company's focus on improving occupancy through digital tools and community engagement initiatives.
Following the earnings announcement, several analysts adjusted their price targets for KinderCare Learning. Baird analyst Jeffrey Meuler maintained the stock with an Outperform rating but lowered the price target from $20 to $13. BMO Capital analyst Jeffrey Silber maintained the stock with an Outperform rating and lowered the price target from $18 to $12. Goldman Sachs analyst George Tong maintained KinderCare Learning with a Buy rating and lowered the price target from $23 to $20. Morgan Stanley analyst Toni Kaplan maintained the stock with an Overweight rating and lowered the price target from $15 to $14.
KinderCare Learning shares dipped 22.1% to trade at $7.64 on Wednesday, following the earnings announcement.
References:
[1] https://www.benzinga.com/analyst-stock-ratings/price-target/25/08/47103905/these-analysts-cut-their-forecasts-on-kindercare-learning-following-weak-q2-earnings
[2] https://www.ainvest.com/news/kindercare-learning-2025-q2-earnings-strong-performance-net-income-surges-35-2-2508/
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