Laureate Education (LAUR) Q1 2025 Earnings Call May 01, 2025 08:30 AM ET Speaker0 Good day everyone and thank you for standing by. Welcome to the Laureate Education First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press 11 on your telephone. You will then hear an automated message advising your hand is raised ...

This presentation includes statements that express Laureate's opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, ''forward-looking statements'' within the meaning of the federal securities laws, which involve risks and uncertainties. Laureate's actual results may vary significantly from the results anticipated in these forward-looking statements. You can identify forward-looking statements becaus ...

Company Updates Full-Year 2025 Guidance Following Completion of Favorable Enrollment Intake CycleMIAMI, May 01, 2025 (GLOBE NEWSWIRE) -- Laureate Education, Inc. (NASDAQ: LAUR), which operates five higher education institutions across Mexico and Peru, today announced financial results for the first quarter and three months ended March 31, 2025. First Quarter 2025 Highlights (compared to first quarter 2024): New enrollments decreased 2%, up 7% adjusted for the timing of semester start dates.Total enrollments ...

Exhibit 99.1 LAUREATE EDUCATION REPORTS FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2025 Company Updates Full-Year 2025 Guidance Following Completion of Favorable Enrollment Intake Cycle MIAMI - May 1, 2025 (GLOBE NEWSWIRE) - Laureate Education, Inc. (NASDAQ: LAUR), which operates five higher education institutions across Mexico and Peru, today announced financial results for the first quarter and three months ended March 31, 2025. First Quarter 2025 Highlights (compared to first quarter 2024): Eilif Serck-H ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2025 OR ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from __________ to __________. Commission File Number: 001-38002 Laureate Education, Inc. (Exact name of registrant as specified in its charter) | Delaware | | 52-1492296 | | ...

Group 1: Company Overview - Laureate Education (LAUR) is part of the Consumer Discretionary sector, which includes 268 individual stocks and currently holds a Zacks Sector Rank of 10 [2] - The Zacks Rank for LAUR is 1 (Strong Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings outlooks [3] Group 2: Performance Metrics - The Zacks Consensus Estimate for LAUR's full-year earnings has increased by 9.4% over the past quarter, reflecting stronger analyst sentiment and an improving earnings outlook [4] - Year-to-date, LAUR has returned 5.5%, outperforming the Consumer Discretionary sector average return of -4.1% [4] Group 3: Industry Context - Laureate Education belongs to the Schools industry, which consists of 18 individual stocks and currently ranks 30 in the Zacks Industry Rank; this industry has gained an average of 4.7% year-to-date [6] - In contrast, Lionsgate Studios Corp. (LION), another outperforming stock in the Consumer Discretionary sector, belongs to the Media Conglomerates industry, which has seen a decline of -5.7% year-to-date [6]

Core Insights - The Zacks Rank system emphasizes earnings estimates and revisions to identify winning stocks, with value investing being a preferred strategy in various market conditions [1] - Zacks has introduced the Style Scores system to highlight stocks with specific characteristics, particularly those with high grades in the Value category [2] Company Analysis: Laureate Education (LAUR) - Laureate Education (LAUR) currently holds a Zacks Rank of 1 (Strong Buy) and an A grade for Value, indicating strong investment potential [3] - The stock has a P/E ratio of 12.39, which is lower than the industry average of 14.91, suggesting it may be undervalued [3] - Over the past year, LAUR's Forward P/E has fluctuated between a high of 13.71 and a low of 9.90, with a median of 11.29 [3] - LAUR's P/B ratio stands at 3.12, which is favorable compared to the industry average P/B of 3.47, indicating solid valuation metrics [4] - The P/B ratio has ranged from a high of 3.32 to a low of 2.22 over the past year, with a median of 2.63 [4] - The combination of these valuation metrics suggests that LAUR is likely undervalued, supported by a strong earnings outlook [5]

Core Points - Laureate Education, Inc. will participate in upcoming conferences, including a presentation by CEO Eilif Serck-Hanssen at the Morgan Stanley Brazil Education Corporate Access Day on April 15, 2025 [1] - The company operates five higher education institutions in Mexico and Peru, serving over 450,000 students through various degree programs [3] Conference Details - The Morgan Stanley 17th Annual Latin America Executive Conference is scheduled for April 2-3, 2025, in New York City [5] - The 2025 Jefferies Latin American Summit will take place on April 8-9, 2025, also in New York City [5] Company Overview - Laureate Education is committed to academic quality and innovation, aiming for market-leading employability outcomes and increased accessibility to higher education [3]

Group 1 - Laureate Education (LAUR) is a strong performer in the Consumer Discretionary sector, with a year-to-date return of approximately 9%, outperforming the sector average of 3.2% [4] - The Zacks Rank for Laureate Education is 1 (Strong Buy), indicating positive analyst sentiment and an improving earnings outlook, with a 9.4% increase in the consensus estimate for full-year earnings over the past 90 days [3] - The Schools industry, to which Laureate Education belongs, has an average year-to-date return of 5.4%, further highlighting LAUR's strong performance relative to its peers [5] Group 2 - The Consumer Discretionary group, which includes 267 companies, is currently ranked 9 within the Zacks Sector Rank, reflecting the overall strength of the sector [2] - Another notable stock in the Consumer Discretionary sector is Lionsgate Studios Corp. (LION), which has a year-to-date return of 12.1% and a Zacks Rank of 2 (Buy) [4][5] - The Media Conglomerates industry, which includes Lionsgate Studios, has a lower year-to-date return of 3.3% and is ranked 85, indicating that LAUR is performing better than some of its industry peers [6]

Financial Data and Key Metrics Changes - In Q4 2024, revenue was $423 million, and adjusted EBITDA was $141 million, representing a 10% year-over-year increase in revenue on an organic constant currency basis, driven by a 5% increase in total enrollment volume [21][22] - For the full year 2024, revenue was $1.567 billion, with adjusted EBITDA of $450 million, resulting in an adjusted EBITDA margin of 28.7%, a historic high for the company [23][24] - Full year net income was $296 million, leading to earnings per share of $1.92 [24] Business Line Data and Key Metrics Changes - In Mexico, new enrollments increased by 4% for the year, with revenue growth of 10% driven by an 8% increase in average total enrollments [29] - In Peru, new enrollments increased by 6% for the year, with revenue growth of 4% driven by a 2% increase in average total enrollments [32] Market Data and Key Metrics Changes - The company remains the largest higher education provider in Mexico and Peru, with strong demand for quality higher education driven by rising participation rates and strong wage premiums for graduates [9][14] - Peru's GDP growth for 2025 is expected to reach approximately 3%, indicating a recovery from the recent recession [16] Company Strategy and Development Direction - The company plans to open four new campuses for its value brands, with two expected to launch in 2025, marking the first new campus launches since 2019 [13] - The focus remains on enhancing academic offerings and expanding digital education capabilities [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic environment in Mexico, despite geopolitical uncertainties, and expects GDP growth of about 1% for 2025 [15][53] - The company anticipates flat to slightly down reported revenues for 2025, but expects growth in adjusted EBITDA and unlevered free cash flow due to local currency revenue growth and margin expansion efforts [19][41] Other Important Information - The company returned over $100 million to shareholders in 2024 and has returned nearly $3 billion since 2019 through share repurchases and cash distributions [8][33] - The company introduced new non-GAAP metrics for adjusted net income and adjusted earnings per share to provide a clearer picture of underlying profitability [25][26] Q&A Session Summary Question: Impact of tariffs and economic environment in Mexico - Management acknowledged that while tariffs do not directly impact the business, a slowdown in foreign direct investment and CapEx spending has affected GDP growth, which in turn impacts enrollments [48][49] Question: Current capital allocation policy - The company aims for a 50% free cash flow conversion on EBITDA, with plans to return 50% of available free cash flow to shareholders after supporting growth [55][56] Question: Tax rate and Peru intake - The effective tax rate is expected to be below 40%, and management is optimistic about the Peru intake due to improving market conditions and GDP growth expectations [62][64]