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

Key Points

• Laureate Education exceeded quarterly expectations: Earnings per share reached $0.52 versus the $0.48 consensus, while revenue rose 21.2% year over year to $485.1 million. Net income and Adjusted EBITDA also increased sharply, supported by 6% growth in total enrollment.
• Management reaffirmed its 2026 outlook for revenue of $1.92–$1.93 billion, Adjusted EBITDA of $593–$599 million, and adjusted EPS of $2.04–$2.10. Growth is being driven by Mexico and Peru enrollment gains, new campuses, and online expansion.
• Investors remain cautious despite strong results: Currency weakness, lower revenue per student from Peru’s online growth, possible attrition, and unchanged guidance pressured sentiment, with shares trading down about 1%. The company did authorize an additional $150 million in share repurchases.

Laureate Education (NASDAQ:LAUR - Get Free Report) issued its earnings results on Thursday. The company reported $0.52 earnings per share for the quarter, beating analysts' consensus estimates of $0.48 by $0.04, FiscalAI reports. Laureate Education had a return on equity of 23.54% and a net margin of 17.57%. The firm had revenue of $485.09 million for the quarter, compared to analysts' expectations of $480.16 million. During the same quarter last year, the firm earned $0.23 earnings per share. The firm's revenue for the quarter was up 21.2% compared to the same quarter last year.

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 Trading Down 1.0%

LAUR traded down $0.35 during midday trading on Thursday, reaching $36.01. 1,451,790 shares of the company were exchanged, compared to its average volume of 1,313,608. The stock's 50-day simple moving average is $37.72 and its 200 day simple moving average is $35.60. Laureate Education has a one year low of $24.98 and a one year high of $40.92. The stock has a market capitalization of $4.96 billion, a P/E ratio of 16.15, a PEG ratio of 1.23 and a beta of 0.41. The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.71 and a current ratio of 0.71.

Key Stories Impacting Laureate Education

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.

Insider Transactions at Laureate Education

In other news, Director Ian Snow sold 427,019 shares of the business's stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $36.26, for a total value of $15,483,708.94. Following the sale, the director directly owned 1,646,324 shares in the company, valued at $59,695,708.24. The trade was a 20.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Over the last three months, insiders sold 521,229 shares of company stock worth $19,103,350. 1.50% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on LAUR. Morgan Stanley raised their price target on Laureate Education from $34.50 to $36.50 and gave the stock an "underweight" rating in a report on Thursday, October 15th. JPMorgan Chase & Co. lowered Laureate Education from an "overweight" rating to a "neutral" rating and set a $41.00 price objective for the company. in a research note on Monday, August 3rd. 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. Finally, Barrington Research began coverage on shares of Laureate Education in a research report on Thursday, July 23rd. They set an "outperform" rating and a $45.00 price objective on the stock. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Laureate Education currently has an average rating of "Moderate Buy" and a consensus price target of $40.90.

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).

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