The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Bright Horizons (NYSE: BFAM) and the rest of the education services stocks fared in Q3.

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.

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. This print exceeded analysts’ expectations by 2.9%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ organic revenue and adjusted operating income estimates.

Interestingly, the stock is up 10.1% since reporting and 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.

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, outperforming analysts’ expectations by 7.5%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Lincoln Educational pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 33.9% since reporting. It 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.

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 significantly 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.

Strategic Education (NASDAQ: STRA)

Formed through the merger of Strayer Education and Capella Education in 2018, Strategic Education (NASDAQ: STRA) is a career-focused higher education provider.

Strategic Education reported revenues of $319.9 million, up 4.6% year on year. This number beat analysts’ expectations by 1.7%. Overall, it was a very strong quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

Strategic Education had the slowest revenue growth among its peers. The stock is up 7.6% since reporting and currently trades at $80.46.

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

Laureate Education (NASDAQ: LAUR)

Founded in 1998 by Douglas L. Becker and based in Miami, Laureate Education (NASDAQ: LAUR) is a global network of higher education institutions.

Laureate Education reported revenues of $400.2 million, up 8.6% year on year. This print surpassed analysts’ expectations by 3.7%. It was a very strong quarter as it also recorded full-year revenue guidance exceeding analysts’ expectations and a solid beat of analysts’ revenue estimates.

The stock is up 17.2% since reporting and currently trades at $33.84.

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

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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