Childcare services Bright Horizons Q3 revenue beats estimates

Overview

• Bright Horizons Q3 revenue grows 12% yr/yr, beating analyst expectations

• Adjusted EPS for Q3 beats consensus, reflecting improved operational performance

• Company attributes success to increased back-up care utilization and enrollment gains

Outlook

• Company expects 2025 revenue to be approximately $2.925 bln

• Company anticipates 2025 diluted adjusted EPS between $4.48 and $4.53

Result Drivers

• BACK-UP CARE UTILIZATION - Higher utilization of back-up care services drove revenue growth, according to CEO Stephen Kramer

• ENROLLMENT GAINS - Enrollment growth and tuition price increases at centers contributed to revenue increase

• MARGIN IMPROVEMENT - Margin improvements in full-service center-based child care segment boosted income from operations

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the personal services peer group is "buy"

• Wall Street's median 12-month price target for Bright Horizons Family Solutions Inc is $135.00, about 31.3% above its October 29 closing price of $92.70

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)