bright horizons announces new share repurchase program

Bright Horizons Family Solutions Inc. (NYSE:BFAM), a $7.3 billion market cap company with impressive year-to-date returns of 15.6%, held its annual shareholder meeting today, during which several key resolutions were passed. Based on the company’s 8-K filing with the Securities and Exchange Commission, three directors were re-elected to the board for one-year terms. Lawrence M. Alleva, Joshua Bekenstein, and David H. Lissy received significant support, with votes in favor ranging from approximately 50.4 million to 52.1 million. According to InvestingPro analysis, the company maintains a perfect Piotroski Score of 9, indicating strong financial health and operational efficiency.

Shareholders also approved, on an advisory basis, the 2024 compensation for the company’s named executive officers. The vote resulted in 50.9 million shares in favor, 3.1 million against, and 71,769 abstentions. Additionally, the shareholders ratified the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. This decision saw 53.6 million votes in favor and 1.4 million against, with 44,625 abstentions.

In a significant development, the board authorized a new share repurchase program, allowing the company to buy back up to $500 million of its common stock. This new program supersedes the previous $400 million authorization from December 2021, which had $58.9 million remaining. The repurchases may occur through open market transactions, privately negotiated deals, or other means in compliance with federal securities laws. The repurchased shares will be retired, and the program will continue indefinitely, subject to management’s discretion and market conditions. InvestingPro data shows the company is currently trading near its Fair Value, with a P/E ratio of 46.1x and operates with moderate debt levels. For deeper insights into BFAM’s valuation and 10+ additional ProTips, consider accessing the comprehensive Pro Research Report available on InvestingPro.

The information in this article is derived from a press release statement.

In other recent news, Bright Horizons Family Solutions reported impressive financial results for the first quarter of 2025, surpassing analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of $0.77, significantly beating the forecast of $0.64. Revenue for the quarter reached $666 million, slightly above the anticipated $665.42 million, marking a year-over-year increase of 7%. This strong performance was driven by growth in key segments, with Full Service Child Care revenue rising by 6% and Backup Care revenue increasing by 12%.

Additionally, Bright Horizons raised its revenue growth guidance for the year to a range of 6.5% to 8.5%, while maintaining its adjusted EPS guidance between $3.95 and $4.15. The company plans to open and close 25 centers each, resulting in a neutral net change. Despite macroeconomic uncertainties, Bright Horizons continues to demonstrate robust market position and confidence in its strategic execution.

Analyst firms such as JPMorgan, Goldman Sachs, and Barclays (LON:BARC) have shown interest in the company’s performance, with discussions focusing on enrollment trends and operational strategies. The company’s focus on improving enrollment processes and maintaining high client retention rates remains a priority amid market competition.

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