Bright Horizons Q2 revenue slightly beats estimates on back-up care growth - BFAM News | RalliesBright Horizons Q2 revenue slightly beats estimates on back-up care growth
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BFAM• Outlook
- Bright Horizons expects 2026 revenue between $3.085 billion and $3.115 billion
- Company sees 2026 diluted adjusted EPS in the range of $5.05 to $5.15
Overview
- U.S. early education provider's Q2 revenue rose 7%, slightly beating analyst expectations
- Adjusted EPS for Q2 increased 20% and beat analyst expectations
- Net income and GAAP EPS declined due to impairment losses and higher tax and interest expense
Result drivers
- Back-up care growth - The company said back-up care revenue grew 19% with strong utilization entering summer.
- Center-based child care - Growth in full service center-based child care contributed to the revenue increase.
- Impairment losses - The decrease in income from operations was primarily related to impairment losses at centers in certain markets.
Key details and analyst coverage
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|
| Q2 Revenue | Slight beat* | $779 million | $774.84 million (7 analysts) |
| Q2 Adjusted EPS | Beat | $1.28 | $1.20 (9 analysts) |
| Q2 EPS | | $0.79 | |
| Q2 Net Income | | $40.60 million | |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
- The current average analyst rating on the shares is buy and the breakdown of recommendations is 5 strong buy or buy, 4 hold and 1 sell or strong sell.
- The average consensus recommendation for the personal services peer group is buy.
- Wall Street's median 12-month price target for Bright Horizons Family Solutions Inc is $93.00, about 12.5% above its July 29 closing price of $82.68.
- The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago.
