Adtalem Global Education Inc. (ATGE) plunged after hours when the company announced its results for the second quarter of 2022. ATGE values at $23.50, losing more than 18% from yesterday’s closing price. The stock closed at $28.75 at the end of the previous trading session. The stock volume in the last trading session was around 303.28K shares.
ATGE: Second quarter 2022 key financials
- The second quarter of 2022 saw an increase in revenue. The revenue was $371.2 million. It is an increase of 58% from the second quarter of 2021. The reason for the revenue is mainly due to the acquisition of Walden.
- The company’s net income in the second quarter was around $17.9 million. Last year the net income in the same quarter was $23.3 million.
- Q2 2022 operating profit is $24.7 million, down from $29.1 million in Q2 2021. It does not include $70.2 million in special items, a 70.0 percent rise from the prior year.
- The diluted earning per share was $0.36 in the second quarter. Excluding special items, continuing operations’ diluted earnings per share were $0.75, up from $0.61 in Q2 2021.
2022 outlook
Adtalem now expects adjusted revenue for the full fiscal year 2022 to be between $1,350 million and $1,390 million. The company forecasts adjusted diluted earnings per share from continuing operations to be between $2.90 and $3.10.
Due to the upcoming sale of Financial Services, that business will be discontinued. Enrollment declines owing to Omicron-induced stress on healthcare workers.
Conclusion
ATGE has lost more than 30% value in the previous year. The current market cap of the company is $1.43 billion. The company is taking measures to increase its growth rate. The 2022 outlook of the company seems promising in this regard. However, it all depends on how the company takes measures to achieve its goals.
