How Weak Enrollment and Falling Earnings at Laureate Education (LAUR) Have Changed Its Investment Story

• Laureate Education recently reported underwhelming student enrollment and a decline in earnings per share, despite some revenue growth through its offerings.
• This combination of weaker enrollment and lower earnings underscores the challenges the company faces in sustaining demand and operational performance.
• We'll now examine how these enrollment and earnings developments may influence Laureate Education's future investment narrative.

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Laureate Education Investment Narrative Recap

To remain a committed shareholder in Laureate Education, an investor needs to believe that enrollment growth in core Latin American markets will drive sustained revenue and earnings improvement, despite recent setbacks. The latest enrollment and EPS decline could materially affect the most important short-term catalyst, continued expansion and new campus investments, by casting doubt on demand forecasts; at the same time, it amplifies the key risk of underutilized assets that could pressure margins and free cash flow if trends persist.

Among recent announcements, Laureate’s revised 2025 revenue guidance is closely tied to these developments, projecting US$1,615 million to US$1,630 million in sales. This update reinforces management’s expectation of growth even as declining EPS and weaker enrollment highlight the need for careful execution around campus investments and student acquisition targets.

However, with waning enrollment exposing Laureate to the real risk that new capacity investments might not deliver the intended financial returns, shareholders will want to pay close attention to ...

Read the full narrative on Laureate Education (it's free!)

Laureate Education's outlook anticipates $2.0 billion in revenue and $343.9 million in earnings by 2028. This scenario requires 8.4% annual revenue growth and a $89.7 million increase in earnings from the current $254.2 million.

Uncover how Laureate Education's forecasts yield a $31.00 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided five fair value estimates for Laureate Education ranging from US$17 to US$63.56 per share. With such varied outlooks, weigh their diverse views alongside ongoing concerns that enrollment shortfalls could intensify pressure on margins and cash flow.

Explore 5 other fair value estimates on Laureate Education - why the stock might be worth 42% less than the current price!

Build Your Own Laureate Education Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Laureate Education research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Laureate Education research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Laureate Education's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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