BRIGHT HORIZONS FAMILY SOLUTIONS Reports Second Quarter FY2023 Earnings Results
August 8, 2023
☀️Earnings Overview
On August 1 2023, BRIGHT HORIZONS FAMILY SOLUTIONS ($NYSE:BFAM) reported its earnings results for the quarter ending on June 30 2023. USD 603.2 million in total revenue was reported, marking a 23.0% increase from the same period last year. Unfortunately, net income dropped 17.4% year-over-year to USD 20.6 million.
Price History
Despite the fact that the company had posted strong results in the previous quarter, its stock opened at $96.6 and closed at $94.8, representing a decline of 2.3% from its prior closing price of 97.0. This was driven by strong performance in its core childcare and education business. Going forward, BRIGHT HORIZONS FAMILY SOLUTIONS is confident about its long-term prospects and expects to achieve robust growth in its core businesses.
It has also announced plans to expand its operations into new markets and explore new services. Overall, the company seems to be well-positioned to capitalize on future growth opportunities and deliver value for its shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for BFAM. More…
| Total Revenues | Net Income | Net Margin |
| 2.23k | 64.85 | 2.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BFAM. More…
| Operations | Investing | Financing |
| 242.74 | -323.64 | -118.79 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for BFAM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.82k | 2.67k | 19.09 |
Key Ratios Snapshot
Some of the financial key ratios for BFAM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.7% | -5.2% | 7.0% |
| FCF Margin | ROE | ROA |
| 7.1% | 8.8% | 2.5% |
Analysis
At GoodWhale, we have analyzed BRIGHT HORIZONS FAMILY SOLUTIONS’s financials and have come to the conclusion that the company is strong in some areas and weak in others. Our Star Chart indicates that the company is strong in medium growth, profitability, and weak in assets and dividend. We classify BRIGHT HORIZONS FAMILY SOLUTIONS as a ‘rhino’, which is a type of company that has achieved moderate revenue or earnings growth. Considering the company’s cashflows and debt, GoodWhale has concluded that BRIGHT HORIZONS FAMILY SOLUTIONS has a high health score of 7/10 and is capable of safely riding out any crisis without the risk of bankruptcy. Therefore, we believe that this company would be attractive to value investors who are looking for a steady return on their investments. It could also appeal to investors seeking a long-term investment opportunity with potential for capital appreciation. More…
Peers
The company operates in the United States, Canada, the United Kingdom, and India. It has a network of more than 1,000 child care centers. The company also offers online learning programs, family support services, and professional development services. The company’s competitors include Mad Paws Holdings Ltd, Rover Group Inc, Mayfield Childcare Ltd.
– Mad Paws Holdings Ltd ($ASX:MPA)
Mad Paws Holdings Ltd is a pet care company that operates in Australia and New Zealand. The company offers a range of services including pet sitting, dog walking, dog daycare, and pet boarding. Mad Paws has a market cap of 39.81M as of 2022 and a ROE of -36.33%.
– Rover Group Inc ($NASDAQ:ROVR)
Rover Group Inc is a publicly traded company that manufactures and sells motor vehicles and related products. The company has a market capitalization of 745.75 million as of 2022 and a return on equity of -12.44%. The company’s products include cars, trucks, buses, and other vehicles.
– Mayfield Childcare Ltd ($ASX:MFD)
Mayfield Childcare Ltd is a publicly traded company that operates in the child care industry. The company has a market capitalization of $63.35 million as of 2022 and a return on equity of 7.15%. Mayfield Childcare Ltd provides child care services to families in the United Kingdom. The company operates a network of child care centers that provide care for children aged 0-5 years old.
Summary
BRIGHT HORIZONS FAMILY SOLUTIONS reported their second quarter earnings of FY2023 with total revenue of USD 603.2 million, a 23.0% year-on-year increase. The net income was, however, down 17.4% from the same period last year, amounting to USD 20.6 million. This is an indicator that investors should be cautious when investing in the company, as the growth in revenue does not necessarily correlate with profitability. Investors should analyze the company’s financials more closely to get a better picture of its performance and viability as an investment.
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