Transcript of Adtalem Global Education Inc. (NYSE:ATGE) Q3 2024 Earnings Call

Adtalem Global Education Inc. (NYSE:ATGE) recently reported its Q3 2024 earnings, and the results were not as expected. The company missed on earnings expectations, with reported EPS of $0.929 compared to expectations of $1.15. This news has caused a stir in the financial world, especially since Adtalem Global Education Inc. is not one of the 30 most popular stocks among hedge funds.

During the earnings call, Jonathan Spitzer, Vice President of Investor Relations, introduced Steve Beard, President and CEO of Adtalem Global Education, and Bob Phelan, Chief Financial Officer. Steve Beard highlighted the company’s strong performance in the third quarter, with total enrollment growing by 7.8% and revenue reaching $413 million, up 11.8% from the previous year. The company also exceeded its performance milestone by expanding its operating margin while increasing year-over-year investments.

Beard emphasized Adtalem’s commitment to providing high-quality academic programs and supporting learners through graduation and into their careers, particularly in healthcare where workforce shortages are a pressing issue. The company’s Growth with Purpose strategy aims to accelerate organic growth through operational excellence and transformational improvements.

Bob Phelan, the CFO, discussed the financial results by segment, highlighting revenue growth in Chamberlain and Walden, as well as improvements in the medical and veterinary segment. He also mentioned the company’s strong cash flow generation and balance sheet strength, which allows for strategic capital allocation.

Looking ahead, Adtalem Global Education Inc. raised its revenue guidance for fiscal year 2024 to $1.56 billion to $1.58 billion and adjusted EPS guidance to $4.80 to $5. The company remains focused on sustaining revenue growth, making growth investments, and achieving operational leverage.

Overall, despite missing earnings expectations, Adtalem Global Education Inc. remains optimistic about its future prospects and is committed to delivering sustainable returns for its stakeholders.