Afya (NASDAQ:AFYA) Issues Earnings Results

Key Points

• EPS beat but revenue missed: Afya reported adjusted EPS of $0.41 vs. consensus $0.36, while revenue came in at $147.08M versus the estimated $174.74M, with a net margin of 20.12% and ROE of 18.45%.
• Stock reaction and valuation: AFYA traded down to $13.50 after the release; the company has a market cap of $1.27B, a P/E of 9.71, and a 12-month range of $13.00–$19.90.
• Analyst consensus is cautious: The consensus rating is "Hold" with an average target of $17.30, as several firms trimmed targets or ratings (e.g., UBS and JPMorgan lowered targets) while only one analyst currently rates it a Buy.

Afya (NASDAQ:AFYA - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.41 EPS for the quarter, beating the consensus estimate of $0.36 by $0.05, FiscalAI reports. Afya had a return on equity of 18.45% and a net margin of 20.12%.The company had revenue of $147.08 million for the quarter, compared to the consensus estimate of $174.74 million.

Afya Stock Performance

AFYA stock traded down $0.38 during trading on Thursday, reaching $13.50. 41,115 shares of the stock were exchanged, compared to its average volume of 112,612. Afya has a twelve month low of $13.00 and a twelve month high of $19.90. The company has a market capitalization of $1.27 billion, a P/E ratio of 9.71, a price-to-earnings-growth ratio of 0.63 and a beta of 0.52. The stock has a 50 day simple moving average of $14.46 and a 200-day simple moving average of $14.79. The company has a current ratio of 0.98, a quick ratio of 0.98 and a debt-to-equity ratio of 0.21.

Analyst Ratings Changes

AFYA has been the subject of several recent analyst reports. UBS Group reaffirmed a "neutral" rating and set a $16.00 price objective (down from $18.00) on shares of Afya in a report on Friday, January 16th. Wall Street Zen downgraded Afya from a "strong-buy" rating to a "buy" rating in a research report on Saturday, January 31st. Weiss Ratings reissued a "hold (c)" rating on shares of Afya in a research report on Wednesday, January 21st. JPMorgan Chase & Co. reaffirmed a "neutral" rating and issued a $22.00 target price (down from $24.50) on shares of Afya in a report on Wednesday, January 7th. Finally, Sanford C. Bernstein upgraded Afya to a "market perform" rating in a report on Friday, January 16th. One research analyst has rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $17.30.

Institutional Trading of Afya

Institutional investors have recently modified their holdings of the company. Daiwa Securities Group Inc. bought a new stake in shares of Afya during the fourth quarter valued at approximately $43,000. Militia Capital Partners LP bought a new position in Afya in the second quarter worth $71,000. Quantbot Technologies LP acquired a new stake in Afya during the second quarter worth $117,000. Van ECK Associates Corp increased its holdings in Afya by 15.7% in the 3rd quarter. Van ECK Associates Corp now owns 10,170 shares of the company's stock valued at $159,000 after buying an additional 1,377 shares during the period. Finally, State of Wyoming bought a new stake in Afya in the 2nd quarter valued at $164,000. Institutional investors and hedge funds own 88.02% of the company's stock.

Afya Company Profile

Afya Ltd. operates as a leading provider of medical education and training services in Brazil. The company offers a comprehensive suite of educational programs that span undergraduate medical degrees, residency exam preparation, continuing medical education (CME) and digital learning platforms. Through a network of partner institutions and its own campus operations, Afya supports students at every stage of the medical training continuum, from enrollment in medical schools to ongoing professional development for practicing physicians.

At the core of Afya's offerings is its undergraduate medical program, delivered through a combination of in-person courses at affiliated campuses and fully digital curricula.

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