Shares of Bright Horizons Family Solutions (BFAM) are soaring 14.35% in pre-market trading on Friday, following the company's impressive third-quarter earnings report and an optimistic outlook for the year ahead.
The child care and early education services provider reported adjusted earnings per share of $1.57 for the quarter ended September 30, significantly surpassing the FactSet analyst consensus of $1.32. This represents a substantial improvement from $1.11 per share in the same quarter last year. Revenue also exceeded expectations, reaching $802.8 million, up from $719.1 million a year earlier and beating the analyst forecast of $780.6 million.
Adding to the positive sentiment, Bright Horizons raised its full-year 2025 guidance. The company now expects adjusted EPS of $4.48 to $4.53, up from its previous forecast of $4.15 to $4.25. Revenue projections were also increased to approximately $2.93 billion, compared to the earlier estimate of $2.90 billion to $2.92 billion. These new targets are above the current analyst expectations of $4.44 EPS and $2.92 billion in revenue. In response to the strong performance and outlook, several analysts have adjusted their price targets, with JP Morgan raising its target to $160 from $156, further boosting investor confidence.
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