Bright Horizons Hits 52-Week Low as Earnings Miss Triggers Sell-Off

Shares of the early education provider tumbled to $64.88 during Friday trading, after touching an intraday low of $63.68. The drop brings the company’s total losses over the last 12 months to 45%. The market reaction followed a report showing that quarterly earnings per share fell to 38 cents, down from 50 cents in the prior year’s fourth quarter. This figure missed the FactSet analyst consensus of $1.01 per share by a wide margin, though adjusted earnings of $1.15 per share slightly exceeded the $1.12 forecast.

Revenue Growth and Operating Costs

The company’s revenue performance provided a rare bright spot, climbing to $733.7 million and exceeding the $727.5 million projected by Wall Street. According to the report, this growth was driven by several key factors:

• Higher utilization of back-up care services.
• Consistent enrollment gains at existing daycare centers.
• Strategic tuition price increases.

However, these gains were offset by a decline in operating income. Bright Horizons reported $14.8 million in costs related to incremental impairment and net lease terminations. For the upcoming fiscal year, the company issued a revenue guidance range of $3.08 billion to $3.15 billion, with adjusted earnings projected between $4.90 and $5.10 per share. Looking further ahead, analysts are forecasting 2026 revenue of $3.11 billion and adjusted earnings of $5.02 per share.