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Dec 31, 2021
Adtalem Q2 2022 Earnings Report
Adtalem's results for Q2 2022, which ended December 31, 2021, were announced, revealing a revenue increase driven by the Walden acquisition, alongside a pending sale of the Financial Services segment and continued COVID-19 headwinds.
Key Takeaways
Adtalem Global Education reported a 58.4% increase in revenue to $371.2 million compared to the prior year, driven by the acquisition of Walden. Diluted earnings per share were $0.36, while operating income was $24.7 million. The company announced the pending sale of its Financial Services segment and revised its full-year guidance.
Revenue increased 58.4% year-over-year to $371.2 million due to the Walden acquisition.
Diluted earnings per share were reported at $0.36, compared to $0.44 in the prior year.
Operating income was $24.7 million, down from $29.1 million in the prior year.
Adtalem revised its full-year guidance due to the pending sale of the Financial Services segment and continued COVID-19 headwinds.
Revenue by Segment
Forward Guidance
Adtalem revised its full fiscal year 2022 guidance for adjusted revenue, excluding special items, to be within the range of $1,350 million and $1,390 million, and adjusted diluted earnings per share of $2.90 to $3.10 from continuing operations, excluding special items.
Positive Outlook
- Focus as a pure play, leading provider of talent to the healthcare industry
- Strategic partnership with Society of Teachers of Family Medicine
- Pending sale of Financial Services segment thereby moving it to discontinued operations.
- Synergies of the recent Walden acquisition
- Re-accreditation for American University of the Caribbean School of Medicine
Challenges Ahead
- Impact of COVID-related headwinds associated with the Omicron variant that has further burdened healthcare professionals, which continues to negatively impact enrollments
- Decrease in new student enrollment was primarily attributable to COVID-related headwinds in Chamberlain’s post-licensure programs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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