Bright Horizons Family Solutions (NYSE:BFAM) Releases Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• Bright Horizons beat earnings expectations, reporting $0.82 EPS vs. $0.79 expected while revenue came in slightly light at $712.22 million; the company posted a 17.41% return on equity and a 6.58% net margin.
• Shares traded up about 0.9% to $81.61 after the report; the stock has a market cap of $4.31 billion, a P/E of 24.29 and a 1‑year range of $63.68–$132.99.
• Analysts have trimmed targets recently (Goldman Sachs, Barclays, BMO among them) and the consensus rating is a "Hold" with an average target price of $107.11.

Bright Horizons Family Solutions (NYSE:BFAM - Get Free Report) posted its earnings results on Tuesday. The company reported $0.82 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.79 by $0.03, FiscalAI reports. The firm had revenue of $712.22 million for the quarter, compared to analyst estimates of $713.35 million. Bright Horizons Family Solutions had a return on equity of 17.41% and a net margin of 6.58%.

Bright Horizons Family Solutions Trading Up 0.9%

Shares of NYSE:BFAM traded up $0.73 during midday trading on Tuesday, reaching $81.61. The company's stock had a trading volume of 1,056,891 shares, compared to its average volume of 858,928. The firm has a market cap of $4.31 billion, a price-to-earnings ratio of 24.29, a price-to-earnings-growth ratio of 1.37 and a beta of 1.28. The company has a quick ratio of 0.52, a current ratio of 0.52 and a debt-to-equity ratio of 0.56. Bright Horizons Family Solutions has a 1 year low of $63.68 and a 1 year high of $132.99. The business has a 50 day moving average price of $79.45 and a 200 day moving average price of $90.68.

Hedge Funds Weigh In On Bright Horizons Family Solutions

Large investors have recently added to or reduced their stakes in the business. Fuller & Thaler Asset Management Inc. purchased a new stake in Bright Horizons Family Solutions in the 4th quarter valued at about $191,952,000. AQR Capital Management LLC lifted its holdings in shares of Bright Horizons Family Solutions by 64.4% during the 4th quarter. AQR Capital Management LLC now owns 1,579,757 shares of the company's stock worth $160,124,000 after acquiring an additional 619,067 shares during the period. Millennium Management LLC boosted its position in shares of Bright Horizons Family Solutions by 14.3% in the fourth quarter. Millennium Management LLC now owns 1,329,253 shares of the company's stock worth $134,786,000 after acquiring an additional 165,962 shares during the last quarter. Morgan Stanley grew its holdings in Bright Horizons Family Solutions by 25.7% in the fourth quarter. Morgan Stanley now owns 1,066,234 shares of the company's stock valued at $108,116,000 after purchasing an additional 217,963 shares during the period. Finally, Dimensional Fund Advisors LP grew its holdings in Bright Horizons Family Solutions by 3.1% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,017,731 shares of the company's stock valued at $103,200,000 after purchasing an additional 30,184 shares during the period.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on BFAM shares. The Goldman Sachs Group cut their price target on Bright Horizons Family Solutions from $130.00 to $112.00 and set a "buy" rating for the company in a report on Friday, February 13th. Robert W. Baird set a $100.00 price objective on Bright Horizons Family Solutions in a research report on Friday, February 13th. Barclays cut their target price on shares of Bright Horizons Family Solutions from $160.00 to $95.00 and set an "overweight" rating for the company in a research note on Tuesday, February 17th. Morgan Stanley set a $70.00 price target on shares of Bright Horizons Family Solutions in a research note on Friday, February 13th. Finally, BMO Capital Markets lowered their price target on shares of Bright Horizons Family Solutions from $124.00 to $100.00 and set an "outperform" rating for the company in a report on Tuesday, February 17th. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and a consensus target price of $107.11.

Bright Horizons Family Solutions Company Profile

Bright Horizons Family Solutions, Inc NYSE: BFAM is a leading provider of employer-sponsored child care and early education services, offering a range of solutions designed to support working families and organizations. Through a network of on-site, near-site and center-based programs, the company partners with corporate and nonprofit clients to deliver infant, toddler, preschool and school-age care. Services emphasize age-appropriate curriculum, developmental milestones and community engagement to ensure high-quality learning experiences.

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