Graham Holdings Q2 revenue rises on segments growth

Overview

• U.S. conglomerate's Q2 revenue rose 7% yr/yr, with growth in most segments

• Adjusted EPS for Q2 rose yr/yr; net income also increased

• Company completed sale of Kaplan Languages Group, recording related charges

Outlook

• Company did not provide specific guidance or forecasts for future quarters or full yr

Result Drivers

• SEGMENT GROWTH - Revenue growth driven by increases in television broadcasting, healthcare, manufacturing, automotive and other businesses, partially offset by decline at education

• OPERATING INCOME MIX - Operating income rose due to improved results at education, television broadcasting and other businesses, partially offset by declines at healthcare, manufacturing and automotive

• NON-OPERATING GAINS AND CHARGES - Results affected by pension settlement gain, gains on marketable equity securities, and charges related to the sale of Kaplan Languages Group

Company press release: ID:nBw2jtLfpa

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "sell"

• The average consensus recommendation for the schools, colleges universities peer group is "buy."

• Wall Street's median 12-month price target for Graham Holdings Co is $990.00, about 19.8% below its July 29 closing price of $1,233.96

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

• July 30 - Group 1 Automotive Q2 revenue misses on consumer affordability

• July 29 - Strategic Education Q2 revenue beats estimates on education technology growth

• July 30 - Laureate Education beats Q2 estimates on strong enrollment growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)