We Ran A Stock Scan For Earnings Growth And Laureate Education (NASDAQ:LAUR) Passed With Ease

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For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.

In contrast to all that, many investors prefer to focus on companies like Laureate Education (NASDAQ:LAUR), which has not only revenues, but also profits. While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.

View our latest analysis for Laureate Education

How Fast Is Laureate Education Growing Its Earnings Per Share?

Laureate Education has undergone a massive growth in earnings per share over the last three years. So much so that this three year growth rate wouldn't be a fair assessment of the company's future. As a result, we'll zoom in on growth over the last year, instead. Outstandingly, Laureate Education's EPS shot from US$0.66 to US$1.66, over the last year. It's a rarity to see 151% year-on-year growth like that.

Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. EBIT margins for Laureate Education remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 9.3% to US$1.6b. That's a real positive.

You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers.

earnings-and-revenue-history
NasdaqGS:LAUR Earnings and Revenue History November 18th 2024

Fortunately, we've got access to analyst forecasts of Laureate Education's future profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting.

Are Laureate Education Insiders Aligned With All Shareholders?

It's a necessity that company leaders act in the best interest of shareholders and so insider investment always comes as a reassurance to the market. So it is good to see that Laureate Education insiders have a significant amount of capital invested in the stock. Indeed, they hold US$26m worth of its stock. That's a lot of money, and no small incentive to work hard. Even though that's only about 0.9% of the company, it's enough money to indicate alignment between the leaders of the business and ordinary shareholders.

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