Lincoln Educational Services Shares Pop Post Q3 Results

Lincoln Educational Services Shares Pop Post Q3 Results
  • Lincoln Educational Services Corp LINC reported third-quarter FY22 sales growth of 3.1% year-on-year to $91.81 million, beating the consensus of $88.89 million.
  • The revenue increase was driven by a 5.9% increase in average revenue per student.
  • Educational services and facilities expenses increased 4.8% to $39.9 million.
  • Segment Results: Transportation and skilled trades segment revenue increased 3.7%, Healthcare and other professions revenue rose 1.6%.
  • The operating margin was 5.3%, and operating income for the quarter fell 15.1% to $4.8 million.
  • The company held $69.6 million in cash and equivalents as of September 30, 2022.
  • Adjusted EBITDA decreased 12.7% to $7.4 million.
  • EPS of $0.10 was in-line with the analyst consensus.
  • CEO Scott Shaw said, "While enrollments and graduation rates remained strong across our campuses, we did experience the decline in student starts we expected during the third quarter."
  • The company repurchased 0.7 million shares for $4.2 million in the quarter.
  • Outlook, reiterated: Lincoln sees FY22 sales of $340 million - $350 million, against the consensus of $345.23 million.
  • The company expects Student start decline / growth of -3% to 3%. Adjusted EBITDA of $25 million - $30 million. 
  • Price Action: LINC shares are trading higher by 9.08% at $6.49 on the last check Monday.
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