KinderCare Learning Analysts Cut Their Forecasts After Q3 Results

KinderCare Learning Companies Inc (NYSE:KLC) reported worse-than-expected third-quarter sales results and cut its FY25 guidance below estimates on Wednesday.

KinderCare Learning reported quarterly earnings of 13 cents per share which met the analyst consensus estimate. The company reported quarterly sales of $676.800 million which missed the analyst consensus estimate of $682.609 million.

KinderCare Learning lowered its FY2025 adjusted EPS guidance from $0.77-$0.82 to $0.64-$0.67 and also cut its sales guidance from $2.750 billion-$2.800 billion to $2.720 billion-$2.740 billion.

“Our third quarter results reflect disciplined execution and continued operational progress through the back-to-school season,” said Paul Thompson, KinderCare’s Chief Executive Officer. “We delivered revenue growth led by strong performance in Champions and sustained engagement from employers who value the breadth and flexibility of our childcare solutions. Our team remained focused on strengthening management and center-level execution to enhance the family experience as parents make their childcare decisions.”

KinderCare Learning shares fell 21% to $3.95 in pre-market trading.

These analysts made changes to their price targets on KinderCare Learning following earnings announcement.

• Morgan Stanley analyst Toni Kaplan downgraded KinderCare Learning from Overweight to Equal-Weight and lowered the price target from $11 to $6.
• UBS analyst Joshua Chan downgraded the stock from Buy to Neutral and lowered the price target from $10 to $4.5.
• Baird analyst Jeffrey Meuler maintained KinderCare Learning with an Outperform rating and lowered the price target from $13 to $8.

Considering buying KLC stock? Here’s what analysts think:

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