Bright Horizons Family Solutions Stock Slumps As Q3 Revenue Lags Consensus, Dodges Outlook

Bright Horizons Family Solutions Inc (NYSE:BFAM) reported third-quarter FY21 sales growth of 36% year-on-year, to $460.33 million, missing the analyst consensus of $486.90 million.
The company attributed the higher revenue to enrollment increases in open child care centers and the re-opening of its temporarily closed child care centers.
Adjusted EPS of $0.64 beat the analyst consensus of $0.63.
The gross profit rose 118% Y/Y to $120.3 million, with a margin expanding 980 basis points to 26.1%.
The operating margin was 10%, and operating income for the quarter was $45.99 million.
Adjusted EBITDA increased 163% Y/Y to $79.1 million.
Bright Horizons Family Solutions held $412 million in cash and equivalents as of September 30, 2021. Cash provided by operating activities for the nine months totaled $185.2 million.
As disclosed earlier, the company said the COVID-19 pandemic has substantially disrupted its global operations. Therefore, it does not currently expect to provide full earnings guidance for the remainder of FY21.
Price Action: BFAM shares are trading lower by 12.10% at $148.74 on the last check Wednesday.