Laureate Education (NASDAQ:LAUR) Releases Earnings Results, Beats Estimates By $0.04 EPS

Laureate Education (NASDAQ:LAUR) announced its earnings results on Thursday. The company reported $0.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.48 by $0.04, FiscalAI reports. Laureate Education had a net margin of 17.57% and a return on equity of 23.54%. The company had revenue of $485.09 million for the quarter, compared to analyst estimates of $480.16 million. During the same period in the prior year, the business earned $0.23 earnings per share. Laureate Education’s quarterly revenue was up 21.2% on a year-over-year basis.

Here are the key takeaways from Laureate Education’s conference call:

• Strong enrollment and financial performance: New and total enrollments rose 8% and 6%, respectively, while third-quarter revenue reached $485 million and Adjusted EBITDA was $147 million. On a constant-currency, calendar-adjusted basis, revenue increased 6% and Adjusted EBITDA grew 14%.
• Growth momentum continued in both markets: Mexico’s primary intake grew 8%, helped by the Puebla campus, while Peru’s secondary intake increased 9%, driven by demand for fully online programs among working adults. Management highlighted same-store gains, new campuses, and online expansion as its three key growth drivers.
• Full-year 2026 guidance was reaffirmed despite recent currency weakness, with revenue projected at $1.92–$1.93 billion, Adjusted EBITDA at $593–$599 million, and adjusted EPS at $2.04–$2.10. Management expects approximately 30–50 basis points of annual margin expansion over the next several years.
• Capital returns and campus expansion were increased: The board authorized an additional $150 million for share repurchases, leaving $225 million available pro forma, while management plans campuses in Southern Lima and Mérida and expects to accelerate openings in 2028.
• Near-term results face some pressure from currency and mix: Weaker Mexican peso and Peruvian sol rates are reducing fourth-quarter guidance, while fully online growth in Peru is lowering average revenue per student and may lead to higher fourth-quarter attrition. Management also cited potential operational disruption from El Niño, although hybrid and online delivery could mitigate the impact.

Laureate Education Stock Down 1.0%

Shares of NASDAQ LAUR traded down $0.35 during trading hours on Thursday, hitting $36.01. The company had a trading volume of 1,451,790 shares, compared to its average volume of 1,313,608. The company has a quick ratio of 0.71, a current ratio of 0.71 and a debt-to-equity ratio of 0.14. The firm’s 50 day moving average is $37.72 and its 200-day moving average is $35.60. Laureate Education has a 1-year low of $24.98 and a 1-year high of $40.92. The stock has a market capitalization of $4.96 billion, a P/E ratio of 16.15, a price-to-earnings-growth ratio of 1.23 and a beta of 0.41.

Laureate Education News Summary

Here are the key news stories impacting Laureate Education this week:

• Positive Sentiment: Third-quarter revenue increased 21% year over year to $485.1 million, exceeding analyst expectations of approximately $480.2 million. Adjusted EPS was $0.52, above the $0.48 consensus estimate and up from $0.25 a year earlier. Laureate Education Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Profitability improved sharply: net income rose to $101.2 million from $34.4 million, operating income increased to $119.1 million from $71.5 million, and adjusted EBITDA climbed to $146.8 million from $94.8 million. Laureate Q3 Revenue Rises 21 Percent
• Positive Sentiment: Enrollment trends remained favorable, with nine-month new enrollments up 9% and total enrollments up 6%, supporting the company’s growth outlook across its Mexico and Peru operations.
• Positive Sentiment: Laureate increased its share-repurchase authorization by $150 million, leaving approximately $225.2 million available for buybacks. Repurchases could support earnings per share and provide stock-price support. Laureate Education Third-Quarter Results and Buyback Announcement
• Neutral Sentiment: Management reaffirmed 2026 revenue guidance of $1.920 billion to $1.930 billion and its broader full-year earnings outlook. The confirmation indicates execution remains on track, but may have disappointed investors seeking an upward revision. Laureate Education Reaffirms 2026 Earnings Guidance
• Negative Sentiment: The stock’s weaker reaction suggests that strong reported results and the buyback announcement were already partly anticipated, while unchanged guidance provided limited new upside. Investors may also be focusing on whether momentum can continue after the substantial year-over-year earnings improvement.

Analysts Set New Price Targets

Several research firms recently weighed in on LAUR. Weiss Ratings upgraded shares of Laureate Education from a “buy (b+)” rating to a “buy (a)” rating in a research report on Tuesday, October 13th. Barrington Research assumed coverage on shares of Laureate Education in a research report on Thursday, July 23rd. They set an “outperform” rating and a $45.00 price target for the company. JPMorgan Chase & Co. downgraded Laureate Education from an “overweight” rating to a “neutral” rating and set a $41.00 price objective for the company. in a report on Monday, August 3rd. Finally, Morgan Stanley increased their target price on shares of Laureate Education from $34.50 to $36.50 and gave the stock an “underweight” rating in a report on Thursday, October 15th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $40.90.

Insider Activity

In related news, Director Ian Snow sold 427,019 shares of the firm’s stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $36.26, for a total value of $15,483,708.94. Following the completion of the sale, the director directly owned 1,646,324 shares in the company, valued at approximately $59,695,708.24. This trade represents a 20.60% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Over the last quarter, insiders have sold 521,229 shares of company stock valued at $19,103,350. 1.50% of the stock is currently owned by corporate insiders.

About Laureate Education

Laureate Education, Inc is a higher education company that operates a network of universities and other learning institutions. Its institutions provide undergraduate and graduate degree programs, professional education, and online and hybrid learning options across fields such as business, health sciences, engineering, technology, and the social sciences.

The company currently serves students primarily in Mexico and Peru. Its Mexican institutions include Universidad del Valle de México (UVM) and Universidad Tecnológica de México (UNITEC), while its Peruvian institutions include Universidad Peruana de Ciencias Aplicadas (UPC) and Universidad Privada del Norte (UPN).