- On July 31, 2025, Laureate Education, Inc. raised its full-year 2025 revenue guidance by approximately US$55 million, driven by more favorable foreign currency rates, and also released second-quarter results showing year-over-year sales growth but a decline in net income.
- The company completed a further share buyback tranche in the second quarter, repurchasing nearly 1% of its shares, which brings the total buyback under the current authorization to over 2.5% of shares outstanding and underscores an ongoing focus on capital return to shareholders.
- We’ll explore how Laureate’s revised 2025 outlook, particularly the higher revenue guidance, influences its long-term investment narrative.
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Laureate Education Investment Narrative Recap
To own Laureate Education, you have to believe in the sustained demand for private higher education in Mexico and Peru and in the company’s ability to capitalize on growth opportunities while containing risks from market concentration. The recent revenue guidance raise is driven by currency tailwinds and, although positive for reported top-line figures, does not meaningfully alter the biggest near-term catalyst, enrollment growth, nor address the principal risk of heavy reliance on two key markets.
Among recent announcements, the share buyback program stands out: Laureate repurchased 1,480,000 shares in the second quarter, signaling continued capital return efforts. While this program can enhance shareholder value, it does not directly address potential volatility stemming from currency or macroeconomic shifts, which remain at the forefront as catalysts and risks are mainly tied to operational performance in Mexico and Peru.
Yet, despite gains from favorable FX rates, investors should remain alert to the consequences of an unexpected reversal in currency trends...
Read the full narrative on Laureate Education (it's free!)
Laureate Education's outlook anticipates $2.0 billion in revenue and $343.9 million in earnings by 2028. This is based on an assumed annual revenue growth rate of 8.4% and a $89.7 million earnings increase from current earnings of $254.2 million.
Uncover how Laureate Education's forecasts yield a $28.00 fair value, a 12% upside to its current price.
Exploring Other Perspectives
Four separate fair value estimates from the Simply Wall St Community range from US$17 to US$61.16 per share. As opinions differ widely on future growth and volatility driven by Mexico and Peru, you can compare these perspectives to better assess whether current expectations align with your own outlook.
Explore 4 other fair value estimates on Laureate Education - why the stock might be worth 32% less than the current price!
Build Your Own Laureate Education Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your Laureate Education research is our analysis highlighting 4 key rewards that could impact your investment decision.
- Our free Laureate Education research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Laureate Education's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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