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

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

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 Stock Down 0.7%

LGCY traded down $0.06 during midday trading on Friday, reaching $8.09. 77,483 shares of the company’s stock were exchanged, compared to its average volume of 54,110. The firm has a market capitalization of $103.63 million, a price-to-earnings ratio of 12.26 and a beta of 1.17. Legacy Education has a one year low of $7.58 and a one year high of $14.70. The business has a 50-day simple moving average of $9.90 and a two-hundred day simple moving average of $11.35.

Institutional Investors Weigh In On Legacy Education

Large investors have recently modified their holdings of the stock. Russell Investments Group Ltd. lifted its position in shares of Legacy Education by 4.8% during the 3rd quarter. Russell Investments Group Ltd. now owns 194,959 shares of the company’s stock worth $1,885,000 after buying an additional 8,867 shares during the period. Jefferies Financial Group Inc. bought a new stake in Legacy Education in the third quarter valued at $97,000. Dimensional Fund Advisors LP grew its position in Legacy Education by 68.9% in the first quarter. Dimensional Fund Advisors LP now owns 24,747 shares of the company’s stock valued at $310,000 after acquiring an additional 10,096 shares during the period. Ancora Advisors LLC grew its position in Legacy Education by 17.6% in the second quarter. Ancora Advisors LLC now owns 100,225 shares of the company’s stock valued at $1,179,000 after acquiring an additional 15,000 shares during the period. Finally, Bank of America Corp DE raised its stake in Legacy Education by 481.2% during the first quarter. Bank of America Corp DE now owns 21,847 shares of the company’s stock worth $274,000 after acquiring an additional 18,088 shares in the last quarter.

Analyst Ratings Changes

A number of research firms have recently issued reports on LGCY. Zacks Research cut Legacy Education from a “hold” rating to a “strong sell” rating in a research report on Friday, September 25th. Maxim Group started coverage on Legacy Education in a research report on Friday, October 30th. They issued a “buy” rating and a $16.00 target price for the company. Two equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Legacy Education presently has an average rating of “Hold” and a consensus price target of $15.30.

About Legacy Education

Legacy Education, Inc. is a postsecondary education company that provides career-focused training through a network of colleges. Its programs are designed to prepare students for employment in healthcare and related fields. The company operates schools in California and Nevada under brands including North-West College, Glendale Career College, and Nevada Career Institute. Programs include nursing and allied health training, with offerings varying by campus.