*Note: EPS may not be comparable with estimate

Laureate Education (NASDAQ: LAUR) reported Q1 EPS* of $0.85, $1.45 better than the analyst estimate of ($0.60). Revenue for the quarter came in at $621.8 million versus the consensus estimate of $610.55 million.

• New enrollments increased 8% on an organic basis.
• Revenue of $621.8 million was up 4% on an organic constant currency basis1. On a reported basis, revenue decreased (2)% and was affected by the weakening of foreign currencies against the US Dollar.
• Operating loss decreased $8.1 million for a 9% improvement.
• Net income (including discontinued operations) for the first quarter of 2019 was $194.3 million, which included a $248.0 million gain, net of tax, related primarily to the completion of the previously announced divestitures of our St. Augustine and Thailand institutions. Net income for the first quarter of 2018 was $171.5 million, which included a $318.3 million gain, net of tax, related to the sales of our Cyprus, Italy and China institutions.
• Adjusted EBITDA increased by $8.1 million to $(21.6) million, an improvement of 10% on an organic constant currency basis.

“We are pleased to report 2019 is off to a good start following completion of the large intake cycle in South America,” said Eilif Serck-Hanssen, Chief Executive Officer. “Throughout the quarter we continued to make progress on our strategic priorities, including divestitures of non-core assets at accretive valuations. The management team remains focused on utilizing scale as an enabler to drive strong outcomes for students and value creation for shareholders.”

GUIDANCE:

Laureate Education sees Q2 2019 revenue of $3.33-3.365 billion, versus the consensus of $3.37 billion.

• Total enrollments to be approximately 865,000, post the sale of UniNorte (Brazil), which has approximately 25,000 students;
• Revenues to be in the range of $3.330 billion to $3.365 billion reflecting the sale of UniNorte, which was anticipated to generate approximately $20 million of revenue in the second half of 2019; and
• Adjusted EBITDA to be in the range of $640 to $650 million reflecting the sale of UniNorte, which was anticipated to generate approximately $5 million of Adjusted EBITDA in the second half of 2019.

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