Legacy Education (NYSEAMERICAN:LGCY) Announces Quarterly Earnings Results, Misses Expectations By $0.04 EPS

Legacy Education (NYSEAMERICAN:LGCY) posted its earnings results on Thursday. The company reported $0.06 EPS for the quarter, missing the consensus estimate of $0.10 by ($0.04), FiscalAI reports. The company had revenue of $20.00 million for the quarter. Legacy Education had a return on equity of 19.04% and a net margin of 11.42%.

Here are the key takeaways from Legacy Education’s conference call:

• Legacy ended the quarter with a record 3,684 students, up 5.4% year over year, and revenue rose 3.1% to $20 million. Management said 105 MRI and Cardiac Sonography starts shifted into the second quarter; without that timing shift, Title IV starts would have increased about 5.5% year over year.
• Operating income fell to $0.9 million from $2.7 million, while adjusted EBITDA declined to $2.1 million from $3.1 million. Management attributed much of the shortfall to planned growth investments and higher seasonal costs, plus an unplanned $687,500 estimated legal settlement.
• Legacy is preparing to launch three approved programs at Contra Costa in the second half of fiscal 2027 and expects to open its Houston campus, with seven programs planned initially, subject to approvals. Management is targeting 300 Houston starts by July 1, while noting that approval timing could affect the ramp.
• Total student starts declined 9.9% year over year, though Title IV starts fell less, by 5.6%; growth in ultrasound technician, sterile processing, and surgical technology helped offset weakness. In vocational nursing, starts were below prior expectations as Legacy tightened admissions, while attrition improved 42% over 18 months and the first-time NCLEX-PN pass rate was 85.7% for the year.
• The company ended September with $21.7 million in cash, about $34 million in working capital, and minimal debt, which management said supports continued investment. Legacy is also conducting due diligence on a potential acquisition but did not commit to a timing for a deal.

Legacy Education Trading Down 5.2%

Shares of Legacy Education stock traded down $0.45 during trading hours on Thursday, reaching $8.15. The stock had a trading volume of 99,935 shares, compared to its average volume of 54,056. The stock’s 50 day moving average is $9.95 and its 200 day moving average is $11.37. The firm has a market capitalization of $104.40 million, a PE ratio of 12.35 and a beta of 1.17. Legacy Education has a twelve month low of $8.11 and a twelve month high of $14.70.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on LGCY shares. Zacks Research downgraded Legacy Education from a “hold” rating to a “strong sell” rating in a report on Friday, September 25th. Maxim Group initiated coverage on shares of Legacy Education in a research note on Friday, October 30th. They set a “buy” rating and a $16.00 price objective on the stock. Two investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $15.30.

Institutional Investors Weigh In On Legacy Education

A number of institutional investors have recently modified their holdings of the business. Royce & Associates LP increased its stake in shares of Legacy Education by 2.5% in the 3rd quarter. Royce & Associates LP now owns 919,231 shares of the company’s stock valued at $8,889,000 after purchasing an additional 22,844 shares in the last quarter. Bard Associates Inc. purchased a new position in Legacy Education during the second quarter worth approximately $5,225,000. Sei Investments Co. boosted its position in Legacy Education by 260.9% during the first quarter. Sei Investments Co. now owns 260,004 shares of the company’s stock worth $3,255,000 after purchasing an additional 187,964 shares in the last quarter. Polar Asset Management Partners Inc. acquired a new stake in Legacy Education in the second quarter valued at approximately $3,007,000. Finally, Russell Investments Group Ltd. grew its holdings in Legacy Education by 4.8% in the third quarter. Russell Investments Group Ltd. now owns 194,959 shares of the company’s stock valued at $1,885,000 after purchasing an additional 8,867 shares during the period.

About Legacy Education

Legacy Education, Inc. is a postsecondary education company that provides career-focused training and degree programs. Its offerings are concentrated in healthcare and other vocational fields, with programs designed to prepare students for employment in areas such as nursing, medical assisting, dental assisting, business, legal services and related occupations. The company operates educational institutions including North-West College and Glendale Career College in California, as well as Nevada Career Institute in Nevada.