Laureate Education Q4 Reported Profit Gains, Despite Lower Revenue

(RTTNews) - Laureate Education, Inc. (LAUR) Thursday announced a surge in fourth-quarter net profit compared to last year. The surge in earnings is attributable to the sale of Australian and New Zealand businesses.

For the fourth quarter, net income attributable to Laureate Education was $379.0 million, compared to $60.9 million in the prior year. On a per-share basis, earnings surged to $1.81 from $0.28 in the prior-year fourth quarter. The company noted that the fourth quarter gain was primarily attributable to the sale of its Australia and New Zealand businesses.

On a reported basis, revenue decreased 19 percent to $285.2 million from $351.8 million in the previous year. The decrease is mainly due to lower new enrollments in view of the COVID-19 pandemic. Total enrollments decreased 8 percent.

Looking ahead to fiscal 2021, the company expects total enrollments to be approximately 337,000, essentially flat versus 2020. Revenues are expected to be in the range of $1,000 to $1,040 million, reflecting a decline of 2 percent to growth of 2 percent on an organic constant currency basis versus 2020.