Vocational education company Covista (NYSE:CVSA) will be reporting results this Thursday after market hours. Here’s what investors should know.
Covista beat analysts’ revenue expectations last quarter, reporting revenues of $503.4 million, up 12.4% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EBITDA estimates but full-year revenue guidance meeting analysts’ expectations.
Is Covista a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Covista’s revenue to grow 1.7% year on year, slowing from the 12.9% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Covista has a history of exceeding Wall Street’s expectations.
Looking at Covista’s peers in the consumer discretionary - education services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Laureate Education delivered year-on-year revenue growth of 15.4%, beating analysts’ expectations by 2.2%, and Bright Horizons reported revenues up 7%, in line with consensus estimates. Laureate Education traded down 1.1% following the results.
Read our full analysis of Laureate Education’s results here and Bright Horizons’s results here.
There has been positive sentiment among investors in the consumer discretionary - education services segment, with share prices up 6% on average over the last month. Covista is up 1.6% during the same time and is heading into earnings with an average analyst price target of $153.75 (compared to the current share price of $119.04).
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