Sweden's AcadeMedia Q4 net sales rise on higher enrollment
Sweden's AcadeMedia Q4 net sales rise on higher enrollment
Overview
Sweden education provider's Q4 net sales rose 10.6% yr/yr, slightly missing analyst estimates
Adjusted EBITA for Q4 increased 16.2% yr/yr, driven by international operations
Company expanded in the Netherlands, UK, and Poland through acquisitions during the quarter
Outlook
Company expects continued stable demand, with student enrolment seen up about 8% for next academic year
AcadeMedia sees good opportunities for further international growth through expansion and acquisitions
Company says demand for adult education programmes remains strong
Result Drivers
INTERNATIONAL EXPANSION - Co said growth in international operations, especially in the Netherlands, UK, and Poland, was the main driver of Q4 earnings improvement
HIGHER ENROLLMENT - Co reported a 5.2% increase in average number of children and students, supporting revenue growth
ADULT EDUCATION GROWTH - Co said adult education segment delivered its strongest result to date, with adjusted EBITA up 14.6% yr/yr
Company press release: ID:nMFNbHhkfQ
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Sales | Slight Miss* | SEK 5.66 bln | SEK 5.69 bln (2 Analysts) |
Q4 Adjusted EPS |
| SEK 4.27 |
|
Q4 EPS |
| SEK 4.01 |
|
Q4 Net Income |
| SEK 385 mln |
|
Q4 EBIT |
| SEK 666 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the miscellaneous educational service providers peer group is "buy."
Wall Street's median 12-month price target for AcadeMedia AB is SEK125.00, about 27.6% above its August 28 closing price of SEK98.00
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)