Bullish indicating open at $55-$60, IPO prices at $37
Investing.com -- KinderCare Learning Companies, Inc. (NYSE:KLC) reported second quarter earnings that fell short of analyst expectations, sending shares tumbling 4.7% as the early childhood education provider faced enrollment challenges.
The company posted adjusted earnings per share of $0.22 for the second quarter, missing the analyst estimate of $0.26. Revenue came in at $700.1 million, below the consensus expectation of $705.72 million, though still representing a 1.5% increase YoY from $689.9 million in the same quarter last year.
KinderCare’s disappointing results were primarily attributed to softer-than-expected enrollment trends late in the quarter. Despite reporting second quarter occupancy of 71%, which the company noted was similar to pre-pandemic levels, the lower enrollment offset approximately 2% growth from higher tuition rates.
"Our second quarter financial results reflect continued revenue growth and the resilience of our business, even as enrollment trends turned softer than anticipated late in the quarter," said Paul Thompson, KinderCare’s Chief Executive Officer.
The company’s income from operations decreased 14.8% to $68.7 million compared to $80.6 million in the second quarter of 2024, primarily due to higher personnel costs from increased wage rates and other center operating expenses.
For fiscal year 2025, KinderCare refined its guidance, now expecting revenue between $2.75 billion and $2.80 billion and adjusted earnings per share between $0.77 and $0.82. The midpoint of this EPS guidance range ($0.795) is in line with the analyst consensus of $0.79.
As of June 28, 2025, KinderCare operated 1,589 early childhood education centers and 1,043 before- and after-school sites, with $119.0 million in cash and cash equivalents and $194.4 million of available borrowing capacity.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.