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Adtalem
🇺🇸 NYSE:ATGE
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•
Mar 31, 2021

Adtalem Q3 2021 Earnings Report

Adtalem's Q3 2021 financial performance showed revenue increase and student enrollment growth, driven by its workforce solutions strategy.

Key Takeaways

Adtalem Global Education reported a 3.4% increase in revenue to $280.7 million for the third quarter of fiscal year 2021. Diluted earnings per share were $0.48, with new and total student enrollment increasing by 8.8% and 4.1%, respectively. The company reaffirmed its full-year outlook of a 5-7% revenue increase and 28-32% EPS growth.

Revenue increased by 3.4% to $280.7 million compared to the prior year.

Diluted earnings per share were $0.48, compared to $2.83 in the prior year.

New student enrollment increased by 8.8%, and total student enrollment increased by 4.1%.

The company reaffirmed its full-year outlook of a 5-7% revenue increase and 28-32% EPS growth.

Total Revenue
$281M
Previous year: $271M
+3.4%
EPS
$0.72
Previous year: $0.81
-11.1%
New Students
3.87K
Previous year: 3.56K
+8.8%
Total Students
40.99K
Previous year: 39.39K
+4.1%
Gross Profit
$158M
Previous year: $153M
+3.1%
Cash and Equivalents
$498M
Previous year: $168M
+196.7%
Free Cash Flow
$71.9M
Previous year: $108M
-33.2%
Total Assets
$3.06B
Previous year: $2.44B
+25.3%

Adtalem

Adtalem

Adtalem Revenue by Segment

Forward Guidance

For the full fiscal year 2021, Adtalem expects revenue growth of 5 to 7%, and growth for diluted earnings per share from continuing operations, excluding special items, of 28 to 32%.

Positive Outlook

  • Revenue growth of 5 to 7% is expected for the full fiscal year 2021.
  • Growth for diluted earnings per share from continuing operations, excluding special items, of 28 to 32% is anticipated.
  • If the Walden acquisition closes in the first quarter of fiscal year 2022, the combined company would be expected to generate over $4.00 of diluted earnings per share from continuing operations.
  • The acquisition of Walden University is expected to increase scale and enhance capabilities.
  • Walden University acquisition underscores commitment to further strengthening position as a premier national healthcare educator.

Challenges Ahead

  • COVID-19 resulted in an estimated revenue loss of approximately $9 million.
  • COVID-19 resulted in an operating income loss of approximately $6 million.
  • COVID-19 resulted in a loss of earnings per share of approximately $0.09.
  • Operating income decreased 10.0% to $51.1 million in Medical and Healthcare segment.
  • Operating income decreased 6.8% to $3.9 million in Financial Services segment.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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