Legacy Education (NYSEAMERICAN:LGCY) Issues Quarterly Earnings Results
by Jessica Moore · The Cerbat GemLegacy Education (NYSEAMERICAN:LGCY – Get Free Report) posted its earnings results on Thursday. The company reported $0.22 EPS for the quarter, FiscalAI reports. Legacy Education had a return on equity of 19.47% and a net margin of 10.89%.The company had revenue of $21.37 million for the quarter.
Here are the key takeaways from Legacy Education’s conference call:
- Revenue rose 15% year over year to $21.4 million in Q3, while adjusted EBITDA increased to $4.4 million and net income climbed to $3.0 million, showing the company is still growing profitably.
- Legacy highlighted improving operating leverage, with educational services expense falling to 51.7% of revenue from 54.4% a year ago, which management said reflects a scaling business model.
- The company said student demand remains strong, supported by 1,078 new student starts in the quarter and a 9.4% increase in student population to 3,550.
- Legacy continued to expand capacity and programs, adding surgical tech and sterile processing cohorts, enlarging Lancaster and Temecula facilities, and preparing new offerings including MRI and cardiac sonography.
- The balance sheet remained solid with $21.7 million in cash, $30.9 million of working capital, and only $600,000 of debt, giving the company flexibility to fund branch expansion, selective acquisitions, and other growth initiatives.
Legacy Education Stock Down 4.6%
NYSEAMERICAN:LGCY traded down $0.58 on Friday, reaching $11.92. The company’s stock had a trading volume of 124,123 shares, compared to its average volume of 68,744. The firm has a market cap of $150.31 million, a price-to-earnings ratio of 19.23 and a beta of 1.24. Legacy Education has a 12-month low of $7.94 and a 12-month high of $14.70. The stock has a 50 day moving average price of $12.72 and a 200 day moving average price of $11.16.
Wall Street Analysts Forecast Growth
A number of equities research analysts have commented on the company. LADENBURG THALM/SH SH lifted their target price on Legacy Education from $14.60 to $15.40 and gave the company a “buy” rating in a research report on Friday. Northland Securities set a $14.50 target price on Legacy Education in a research report on Friday. One investment analyst has rated the stock with a Buy rating, According to MarketBeat.com, Legacy Education presently has a consensus rating of “Buy” and a consensus price target of $14.95.
View Our Latest Report on Legacy Education
Institutional Investors Weigh In On Legacy Education
Several institutional investors and hedge funds have recently modified their holdings of the company. Dimensional Fund Advisors LP raised its holdings in shares of Legacy Education by 68.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 24,747 shares of the company’s stock valued at $310,000 after buying an additional 10,096 shares during the period. Renaissance Technologies LLC raised its holdings in shares of Legacy Education by 87.6% in the 1st quarter. Renaissance Technologies LLC now owns 72,000 shares of the company’s stock valued at $901,000 after buying an additional 33,628 shares during the period. Finally, Sei Investments Co. raised its holdings in shares of Legacy Education by 260.9% in the 1st quarter. Sei Investments Co. now owns 260,004 shares of the company’s stock valued at $3,255,000 after buying an additional 187,964 shares during the period.
About Legacy Education
The Company owns and operates the following career institutions that focus on real-life training by utilizing educational practices in different job markets: High Desert Medical College (“HDMC”), Central Coast College (“CCC”), and Integrity College of Health (“Integrity”). HDMC has three campuses located in Lancaster, California, Bakersfield, California and Temecula, California. HDMC offers the following certificate or degree programs: ultrasound technician (“UT”), vocational nursing (“VN”), VN Associate of Applied Science, Associate Degree of Nursing, nursing assistant, Magnetic Resonance Imaging (“MRI”) Associate of Applied Science, cardiac sonography, pharmacy technician, dental assisting, clinical medical assisting and medical administrative assisting programs (including medical billing and coding programs), veterinary assistant, UT Associate of Applied Science degree, phlebotomy technician and nursing assistant avocational courses, and a number of continuing education programs.