Arco Platform Ltd Cl A Up 0.24% To $12.08 After Earnings Miss

Friday, May 26, 2023 - Arco Platform Ltd Cl A (ARCE) reported downside earnings and revenues today.

Arco Platform Ltd Cl A's earnings came in at an EPS loss of $0.12 per share, 33% lower than estimates for an EPS loss of $0.09 per share. The firm's earnings are down 209% since reporting $0.11 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Revenues were downbeat at $103 million. That is an increase of 25.25% in revenues from the year-ago report and is 3.74% lower than consensus estimates set at $107 million.

The stock is up 0.24% to $12.08 after the report.

Despite revenues increasing, earnings decreased, signaling a decline in profit margins.

The average recommendation from Wall Street analysts was a Strong Buy which may get revised based on this new data.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 31. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.

Arco Platform Ltd provides a complete pedagogical system with technology-enabled features to deliver educational content to private schools in Brazil. Its turnkey curriculum solutions provide educational content in both printed and digital formats delivered through its platform to improve the learning process. The company's operating segment includes Core Curriculum and Supplemental Solutions. It generates maximum revenue from the Core Curriculum segment. The Core Curriculum business segment provides solutions that address the Brazilian K-12 curriculum requirements through a personalized and interactive learning experience. Students Access content in various formats, such as digital, video, print, and other audiovisual formats that are aligned with the daily curriculum of their classes.