Loading...
•
Dec 31, 2022
Lincoln Tech Q4 2022 Earnings Report
Lincoln Educational Services returned to student start growth, achieved strong financial results, and graduation rates reached a new company high.
Key Takeaways
Lincoln Educational Services Corporation reported strong Q4 2022 results, with revenue and Adjusted EBITDA growth compared to the previous year. Student retention and placement rates continued positive trends, and graduation rates reached a new company high. The company is investing in a new hybrid teaching model and program expansions to accelerate growth.
Lincoln returned to student start growth during the fourth quarter.
The company achieved strong financial results in its most profitable quarter.
Student retention and placement rates continued their positive trends.
Graduation rates reached a new company high.
Forward Guidance
Lincoln expects modest revenue growth for the full year 2023, driven by an increase in new student starts and higher revenue per student. Profitability is expected to be depressed due to investments in the hybrid teaching model, centralization of financial aid, and the launch of new programs. Adjusted EBITDA is forecasted to be $19 - $24 million for 2023.
Positive Outlook
- Continued strong demand for programs
- Efficiency and growth from investments
- Early contribution from new Atlanta, GA location
- Adjusted EBITDA will approximately double from 2022 levels by 2025
- Evaluating additional locations to open five new campuses in the next five years
Challenges Ahead
- Increased instructional costs over the short term
- Extending investment in centralizing financial aid process into 2023
- Incurring expenses associated with the initial launch of new programs
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...