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Dec 31, 2023

Adtalem Q2 2024 Earnings Report

Adtalem's Q2 2024 performance reflected accelerated enrollment and revenue growth, driven by strong profitability and high-quality academic outcomes.

Key Takeaways

Adtalem Global Education reported an 8.4% increase in revenue and a 6.2% increase in total student enrollment for the second quarter of fiscal year 2024. Diluted earnings per share were $0.98, and adjusted EPS was $1.23, representing a 5.1% year-over-year growth. The company also raised its fiscal year 2024 guidance for revenue and adjusted earnings per share.

Revenue increased by 8.4% year-over-year to $393.2 million.

Total student enrollment grew by 6.2% year-over-year to 81,772.

Diluted earnings per share reached $0.98, while adjusted EPS was $1.23, a 5.1% increase year-over-year.

The company completed its $300 million share repurchase program and authorized a new $300 million program.

Total Revenue
$393M
Previous year: $363M
+8.2%
EPS
$1.23
Previous year: $1.17
+5.1%
Gross Profit
$221M
Previous year: $204M
+8.4%
Cash and Equivalents
$183M
Previous year: $208M
-12.0%
Free Cash Flow
-$22.4M
Previous year: -$54.1M
-58.6%
Total Assets
$2.7B
Previous year: $2.84B
-5.0%

Adtalem

Adtalem

Forward Guidance

Adtalem raised its fiscal year 2024 outlook, expecting revenue between $1,520 million and $1,560 million, and adjusted earnings per share between $4.55 and $4.75.

Positive Outlook

  • Revenue guidance raised to $1,520 million - $1,560 million (previously $1,470 million - $1,530 million).
  • Adjusted EPS guidance raised to $4.55 - $4.75 (previously $4.25 - $4.45).
  • Strong top- and bottom-line performance expected to continue.
  • Company is well-positioned to impact the U.S. healthcare workforce.
  • Focus on delivering practice-ready clinicians at scale.

Challenges Ahead

  • Uncertainty of special items that may be incurred in the future.
  • Risk factors described in the company's most recent Annual Report on Form 10-K.
  • Factors that could cause actual results to differ materially from forward-looking statements.
  • No reconciliation of non-GAAP guidance measures to corresponding GAAP measures is available.
  • The company assumes no obligation to publicly update or revise its forward-looking statements.