KinderCare set for biggest one-day drop on record after slashing FY forecasts
KLC•Management comments and analyst reaction
"We're just not seeing some of the rate impact we thought we would start seeing from subsidy come through," CFO Anthony Amandi said on the post-earnings call, referring to state subsidy reimbursement.
Brokerage J.P. Morgan downgraded the stock to "underweight" from "neutral".
One of eight brokerages rate the stock "buy" or higher, four rate it "hold" and three rate it "sell"; the median price target is $4, according to data compiled by LSEG.
Including the session's move, the stock is down over 38% year to date.
Shares fall after forecast cuts and earnings miss
Shares of early childhood education provider KinderCare Learning Companies KLC.N fell 43.9% to $2.71, set for their biggest one-day drop on record if losses hold.
The company cut its revenue forecast to $2.66 billion to $2.7 billion from a prior range of $2.7 billion to $2.75 billion. It also cut FY adjusted EPS guidance to 5 cents to 15 cents versus its previous range of 15 cents to 25 cents.
KinderCare reported second-quarter adjusted EPS of and revenue of , both below analysts' consensus estimates, according to data compiled by LSEG.
