Bright Horizons beats the Street on earnings in first quarter of 2019
Bright Horizons Family Solutions, the US’s leading childcare and early education provider (which also operates a significant UK business, as well as in the Netherlands and India), reported earnings last week, beating the Street’s estimates on earnings. Driving this growth is the continuing expansion into “back-up care” packages that offer multi-service deals on top of full-service childcare. On an earnings call, the company’s CEO, Stephen Kramer, announced that major client Chick-fil-A became the latest name to add this service to their package.
Bright Horizons’ share price has appreciated by 17% so far this year
Source: Yahoo Finance
The company, which provides childcare and associated services on a commercial basis to corporate clients, reported adjusted earnings of 81c per share, beating out consensus estimates of 79c from Wall Street. That’s a 13% increase on a year on year basis. The company also saw good progress on revenue, which rose 8% from the year-ago quarter to $502 million.
Kramer said the company was “very pleased with the strong start to 2019” and added a number of clients and services to its back-up care service. He added that the company was also pursuing growth through acquisition, and purchased UK provider My Family Care during the quarter. He said:
“In the first quarter, we acquired My Family Care, an innovative and highly regarded provider of back-up care and other family support services for leading employers in the U.K. This transaction is a great example of Bright Horizons being an acquirer of choice, building a relationship over time that enabled us to acquire this strategic asset off market. We welcome the My Family Care founders and their talented team to our organization along with their client base, including leading employers such as Virgin Atlantic and Rolls-Royce. Together, we are well-positioned to extend our leadership position in the emerging back-up care market in the UK”
Dominion holds Bright Horizons Family Solutions in its Global Trends Luxury Fund.
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