As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at education services stocks, starting with Lincoln Educational (NASDAQ: LINC).

A whole industry has emerged to address the problem of rising education costs, offering consumers alternatives to traditional education paths such as four-year colleges. These alternative paths, which may include online courses or flexible schedules, make education more accessible to those with work or child-rearing obligations. However, some have run into issues around the value of the degrees and certifications they provide and whether customers are getting a good deal. Those who don’t prove their value could struggle to retain students, or even worse, invite the heavy hand of regulation.

The 7 education services stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.8% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 3.1% on average since the latest earnings results.

Best Q3: Lincoln Educational (NASDAQ: LINC)

Established in 1946, Lincoln Educational (NASDAQ: LINC) is a provider of specialized technical training in the United States, offering career-oriented programs to provide practical skills required in the workforce.

Lincoln Educational reported revenues of $141.4 million, up 23.6% year on year. This print exceeded analysts’ expectations by 7.5%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

“As the demand for high-value career-focused training continues to reach new heights across America, Lincoln’s proven expertise, innovative training platforms, and campus development strategies are creating sustained levels of growth,” said Scott Shaw, President and Chief Executive Officer.

Lincoln Educational achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 33.9% since reporting and currently trades at $23.84.

Is now the time to buy Lincoln Educational? Access our full analysis of the earnings results here, it’s free for active Edge members.

Bright Horizons (NYSE: BFAM)

Founded in 1986, Bright Horizons (NYSE: BFAM) is a global provider of child care, early education, and workforce support solutions.

Bright Horizons reported revenues of $802.8 million, up 11.6% year on year, outperforming analysts’ expectations by 2.9%. The business had an exceptional quarter with a solid beat of analysts’ organic revenue and adjusted operating income estimates.

The market seems happy with the results as the stock is up 10.1% since reporting. It currently trades at $101.62.

Is now the time to buy Bright Horizons? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Grand Canyon Education (NASDAQ: LOPE)

Founded in 1949, Grand Canyon Education (NASDAQ: LOPE) is an educational services provider known for its operation at Grand Canyon University.

Grand Canyon Education reported revenues of $261.1 million, up 9.6% year on year, in line with analysts’ expectations. It was a slower quarter as it posted full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ EPS estimates.

Grand Canyon Education delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 6.9% since the results and currently trades at $165.90.

Read our full analysis of Grand Canyon Education’s results here.

Adtalem (NYSE: ATGE)

Formerly known as DeVry Education Group, Adtalem Global Education (NYSE: ATGE) is a global provider of workforce solutions and educational services.

Adtalem reported revenues of $462.3 million, up 10.8% year on year. This print topped analysts’ expectations by 2%. More broadly, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but full-year revenue guidance meeting analysts’ expectations.

Adtalem had the weakest full-year guidance update among its peers. The stock is down 29% since reporting and currently trades at $100.72.

Read our full, actionable report on Adtalem here, it’s free for active Edge members.

Universal Technical Institute (NYSE: UTI)

Founded in 1965, Universal Technical Institute (NYSE: UTI) is a leading provider of technical training programs, specializing in automotive, diesel, collision repair, motorcycle, and marine technicians.

Universal Technical Institute reported revenues of $222.4 million, up 13.3% year on year. This result surpassed analysts’ expectations by 1.3%. Overall, it was a strong quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

Universal Technical Institute achieved the highest full-year guidance raise among its peers. The stock is down 10.8% since reporting and currently trades at $26.30.

Read our full, actionable report on Universal Technical Institute here, it’s free for active Edge members.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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