Laureate Education (NASDAQ: LAUR) reported Q1 EPS of ($1.05), $0.09 worse than the analyst estimate of ($0.96). Revenue for the quarter came in at $855.9 million versus the consensus estimate of $833.64 million.

Outlook for Fiscal 2017

Laureate is reaffirming the financial guidance previously provided for full-year 2017. The guidance for 2017 reflects the impact from the sale of our French and Swiss assets in 2016, which will unfavorably impact both year-over-year Revenue and Adjusted EBITDA by approximately (3%). Additionally, currency translation from foreign exchange rates, based on current rates, is expected to cause a (1%) reduction year-over-year in 2017 for Adjusted EBITDA, with no material impact on Revenue expected.

Based on the current foreign exchange spot rates1, Laureate expects its organic (i.e., excluding acquisitions and asset dispositions) performance for full-year 2017 to be as follows:

• Total enrollments in the range of 1,064,000 to 1,080,000, representing 2.0-3.5% growth as compared to December 31, 2016
• Revenues in the range of $4,287 million to $4,348 million, representing 4.5-6.0% organic (pro forma for asset dispositions in 2016) constant currency growth
• Adjusted EBITDA in the range of $789 million to $804 million, representing 8.0-10.0% organic (pro forma for asset dispositions in 2016) constant currency growth
• Capex spending at 7% to 8% of revenues to support growth initiatives and ongoing maintenance
• Increase in total number of shares of Class A common stock outstanding by approximately 55.7 million, resulting from the conversion of the Exchanged Notes and $400 million of shares of Series A Preferred Stock (assuming payment-in-kind dividends), in each case not later than February 7, 2018, based on a conversion price of $14.00 per share of Class A common stock, the price per share to the public in our IPO; and
• Reported earnings per share in 2017 to be affected by a $290-$300 million non-cash charge to earnings per share related to accounting for the non-cash beneficial redemption and conversion features due to the terms of the shares of Series A Preferred Stock

First Quarter 2017 Highlights (compared to first quarter 2016):

• New enrollments increased 4% excluding asset dispositions and adjusted for the timing of our intake in Peru due to severe floods in that country
• Total enrollments increased 2%, up 3% excluding asset dispositions
• Revenue decreased 6% to $855.9 million; up 3% on an organic constant currency basis
• Operating losses increased by $51.7 million to $62.9 million
• Net loss for the quarter was $120.4 million, as compared to a net loss of $102.4 million in the first quarter of 2016
• Adjusted EBITDA decreased 34% to $48.6 million; however on an organic constant currency basis Adjusted EBITDA was up 22%

For earnings history and earnings-related data on Laureate Education (LAUR) click here.