Yahoo Finance Bright Horizons Earnings: What To Look For From BFAM
Child care and education company Bright Horizons (NYSE:BFAM) will be announcing earnings results tomorrow after the bell. Here's what investors should know.
Bright Horizons beat analysts' revenue expectations by 1.2% last quarter, reporting revenues of $622.7 million, up 12.5% year on year. It was an ok quarter for the company, with a decent beat of analysts' organic revenue estimates but full-year revenue guidance missing analysts' expectations.
Is Bright Horizons a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Bright Horizons's revenue to grow 10.4% year on year to $666.1 million, slowing from the 23% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.73 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Bright Horizons has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 2.3% on average.
Looking at Bright Horizons's peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Royal Caribbean delivered year-on-year revenue growth of 16.7%, beating analysts' expectations by 1.6%, and Churchill Downs reported revenues up 15.9%, topping estimates by 3.7%. Royal Caribbean traded down 6.7% following the results while Churchill Downs's stock price was unchanged.
Read our full analysis of Royal Caribbean's results here and Churchill Downs's results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 11.8% on average over the last month. Bright Horizons is up 13.1% during the same time and is heading into earnings with an average analyst price target of $115 (compared to the current share price of $122.28).
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