Laureate Education (LAUR) Announces Financial Earnings Results For The Fourth Quarter And Full-Year 2024 And Provides 2025 Outlook

Laureate Education, Inc. (LAUR) today announced its financial results for the recent quarter, showcasing a robust performance. The company reported a revenue of $423.4 million, surpassing the estimated $411.5 million and marking a significant beat with a $11.9 million difference. Earnings per share met expectations with an EPS estimate of $0.42. This performance highlights Laureate Education’s strong market position and operational efficiency.

Key Highlights:

• Revenue for Q4 2024 increased by 3% to $423.4 million, with a 10% increase on an organic constant currency basis.
• Operating income for Q4 2024 was $124.2 million, up from $110.0 million in Q4 2023.
• Net income for Q4 2024 was $93.6 million, a significant increase from $41.7 million in Q4 2023.
• For the full year 2024, revenue increased by 6% to $1,566.6 million, with a 7% increase on an organic constant currency basis.
• New enrollments and total enrollments both increased by 5% in 2024.
• Adjusted EBITDA for 2024 was $450.1 million, up from $418.6 million in 2023.
• The company repurchased approximately $102 million of its common stock in 2024.
• For 2025, total enrollments are expected to grow by 4%-5%, with revenues projected to be between $1,545 million and $1,570 million.
• Adjusted EBITDA for 2025 is expected to grow by 4%-6% on an as-reported basis and 11%-13% on an organic constant currency basis.

Summary:

Laureate Education, Inc. reported a strong financial performance for the fourth quarter and full year of 2024, with significant increases in revenue, operating income, and net income. The company saw a 3% increase in revenue for Q4 2024, reaching $423.4 million, and a 10% increase on an organic constant currency basis. Operating income rose to $124.2 million, and net income more than doubled to $93.6 million compared to the same period in 2023. For the full year, revenue increased by 6% to $1,566.6 million, with a 7% increase on an organic constant currency basis. New and total enrollments both grew by 5%, contributing to the overall financial success. Adjusted EBITDA for the year was $450.1 million, reflecting a solid growth trajectory.

Looking ahead to 2025, Laureate Education anticipates continued growth opportunities despite potential foreign currency translation headwinds due to the weakening of the Mexican Peso. The company expects total enrollments to increase by 4%-5%, with revenues projected to be between $1,545 million and $1,570 million. Adjusted EBITDA is expected to grow by 4%-6% on an as-reported basis and 11%-13% on an organic constant currency basis. Eilif Serck-Hanssen, President and CEO, emphasized the company’s strong balance sheet and high free cash flow generation, which will support their growth strategy and allow for the return of excess capital to shareholders. He also acknowledged the dedication of the faculty and staff in furthering the mission of providing accessible quality education in Mexico and Peru.

Laureate Education, Inc. (LAUR) has been on a remarkable upward trajectory, with its stock price surging by 55.49% over the past year. This impressive performance is underpinned by strong fundamental metrics, including a price-to-earnings ratio of 11.84, which suggests that the stock is reasonably valued relative to its earnings. The company’s earnings per share (EPS) have grown at an astounding two-year compound annual growth rate (CAGR) of 204.86%, reflecting robust profitability and operational efficiency. Additionally, Laureate’s revenue has increased at a healthy two-year CAGR of 14.10%, indicating solid top-line growth. The return on invested capital stands at a commendable 16.09%, showcasing effective capital management. With a net profit margin of 13.79%, the company is efficiently converting revenue into profit. Over the past six months, the stock has gained 34.85%, highlighting sustained investor confidence and market optimism about its future prospects.

Laureate Education, Inc., together with its subsidiaries, provides higher education programs and services to students through a network of universities and higher education institutions. The company offers a range of undergraduate and graduate degree programs in the areas of business and management, medicine and health sciences, and engineering and information technology through campus-based, online, and hybrid programs. It provides its services in Mexico, Peru, and the United States. The company was formerly known as Sylvan Learning Systems, Inc. and changed its name to Laureate Education, Inc. in May 2004. Laureate Education, Inc. was founded in 1989 and is headquartered in Miami, Florida.