Bright Horizons Family Solutions beats the Street on earnings
Bright Horizons, a provider of childcare and early education services to families worldwide, posted financial results that met top-line targets, and beat the Street’s expectations on the bottom line. The company, which has 600 locations in its domestic market (the US) and a further 300 in its second-largest market (the UK and Ireland), was also keen to discuss the results of recent research it has carried out into the challenges facing working parents.
Investors liked what they saw from Bright Horizons’ earnings report, and the company’s share price continued its upwards trajectory
Source: Yahoo Finance
Fourth quarter revenue for 2018 came in at $478.2 million, meeting analysts’ estimates. When it came to earnings, however, reported figures left the Street’s predictions in the dust: Bright Horizons said that adjusted earnings in the three-month period hit 90 cents per share (or $46.7 million profit). That’s an easy win over the consensus estimate of 84 cents per share. For the full year, Bright Horizons said revenue was $1.9 billion and profit came in at $158 million, which worked out at $2.66 per share.
On the earnings call, the group’s president and CEO, Stephen Kramer, chose to highlight the impact of some recent research it had carried out. In a lengthy comment, he said: “For five years we've been researching the struggle, working parent face in both the U.S. and the U.K. through our Modern Family Index. The harsh reality is that when we focus the lens on working mothers, it's clear that workplaces still have a long way to go to meet the needs of women as they grow their families and their careers at the same time.”
“On an equally important note, our Modern Family Index reveals that mothers bring key leadership skills that are critical to today's businesses. What we've learned from the studies is that the need is as great as ever for employers to provide family friendly services. It's not only important for families, but it's critical for the health of employers as well. We are very proud to be the partner of choice for so many leading employers looking to meet the needs of the modern workforce.”
Bright Horizons said it expects earnings per share for the current quarter to come in between 77 cents and 79 cents. For full-year 2019, it is predicting earnings in a range of $3.57 to $3.63 per share.
Dominion holds Bright Horizons Family Solutions in its Global Trends Luxury Fund.
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