IEL –7.55%: Delivered 1H25 earnings below market estimates with solid cost controls but underwhelming volumes across all business segments.
- Adjusted net income $58.3 million (-46% y/y) vs. estimate $69.6 million
- Student placement revenue $210.6 million, -18% y/y
- English language testing revenue $209.5 million, -22% y/y
The education provider posted a 15% decline in their student volumes which outperformed the market decline of 28%. However, the recent regulatory impacts are significant, and will have a lasting impact on the business with the firm guiding international student volumes down by 20-30% in FY25.
MM is neutral/bearish IEL
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