IEL –48.06%: today announced a profit downgrade as a result of falling testing volumes, amid continued uncertainty around global immigration and trade policy.
- FY25 student placement volumes expected to decrease by 28-30%.
- FY25 language testing volumes expected to decrease by 18-20%.
- FY25 adjusted earnings before interest and tax $115-$125 million vs consensus earnings at ~$165 million.
The stock was down almost ~50% early in the session, having more than halved already from ~$16 less than a year ago. With a month left in the FY, the early update on earnings is indicative of the rapidly deteriorating operating environment for the business. With downgrades at each of the last 2 earnings updates, the outlook is murky and will remain so until clear and certain policy can be introduced at the macro level.
MM remains neutral/bearish IEL
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