On August 6, 2024, Adtalem Global Education Inc (ATGE, Financial) released its 8-K filing for the fourth quarter and fiscal year 2024, showcasing robust financial performance and significant enrollment growth. Adtalem Global Education Inc is an American for-profit educational company that operates various university and educational programs, specializing in business, medicine, education, and nursing degree programs.
Performance Overview
Adtalem Global Education Inc reported a 9.2% year-over-year increase in revenue for fiscal year 2024, reaching $1.58 billion, surpassing the annual analyst estimate of $1.573 billion. The company's diluted earnings per share (EPS) for the fiscal year stood at $3.39, with an adjusted EPS of $5.01, reflecting a 19.0% year-over-year growth. Total enrollment for the fourth quarter increased by 10.0% year-over-year.
Financial Achievements
Adtalem's strong financial performance is attributed to disciplined operational execution and strategic initiatives aimed at expanding its market presence in healthcare education. The company's revenue for the fourth quarter was $409.9 million, exceeding the quarterly analyst estimate of $398.63 million. This growth is crucial for Adtalem as it continues to solidify its position as a leading healthcare educator in the United States.
Income Statement Highlights
| Metric | Q4 2024 | Q4 2023 | % Change | FY 2024 | FY 2023 | % Change |
|---|---|---|---|---|---|---|
| Revenue | $409.9M | $364.6M | 12.4% | $1.58B | $1.45B | 9.2% |
| Operating Income | $68.5M | $39.6M | 73.0% | $217.1M | $168.2M | 29.1% |
| Net Income | $49.4M | $22.2M | 122.5% | $136.8M | $93.4M | 46.5% |
| Diluted EPS | $1.28 | $0.50 | 156.0% | $3.39 | $2.05 | 65.4% |
Balance Sheet and Cash Flow
Adtalem's balance sheet remains strong with total assets of $2.74 billion as of June 30, 2024. The company reported cash and cash equivalents of $219.3 million. Total liabilities stood at $1.37 billion, with long-term debt amounting to $648.7 million. The company's robust cash generation is evident from its operating cash flow, which supports its strategic investments and shareholder returns.
Segment Performance
Adtalem's performance across its segments was notable:
- Chamberlain: Revenue increased by 15.6% year-over-year to $167.0 million for Q4 2024, with total students up 10.4% to 36,750.
- Walden: Revenue grew by 13.3% year-over-year to $156.3 million for Q4 2024, with total students up 11.3% to 41,845.
- Medical and Veterinary: Revenue rose by 5.4% year-over-year to $86.6 million for Q4 2024, despite a slight decline in total students to 4,726.
Fiscal Year 2025 Outlook
Adtalem has initiated guidance for fiscal year 2025, projecting revenue in the range of $1.66 billion to $1.70 billion, representing a 5% to 7.5% growth year-over-year. Adjusted EPS is expected to be between $5.60 and $5.85, indicating a 12% to 17% growth year-over-year.
"This year was a fundamental chapter in Adtalem's journey, further solidifying our market leading position in healthcare education. Through the rigorous implementation of our Growth with Purpose strategy, we have significantly broadened our impact culminating in 10% enrollment growth during the fourth quarter. This trajectory is a testament to our unwavering commitment to excellence," said Steve Beard, president and chief executive officer, Adtalem Global Education.
For more detailed financial information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Adtalem Global Education Inc for further details.
