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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.
Adtalem
Adtalem
Adtalem Revenue by Segment
Revenue by Segment
Chamberlain Revenue
CapyFin.comWalden Revenue
CapyFin.comMedical and Veterinary Revenue
CapyFin.com 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.
- Segment operating loss was $2.4 million, driven primarily by intangible amortization expense for Walden.
- Second quarter segment revenue decreased 2.0% to $139.1 million compared with the prior year for Chamberlain
- Diluted earnings per share was $0.36 compared with diluted earnings per share of $0.44 in the prior year
Revenue & Expenses
Visualization of income flow from segment revenue to net income