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Why Lincoln Educational Stock Surged Today
Key Points
Lincoln Educational provides practical, in-demand educational programs.
It's helping to fill the gap in skilled workers for fast-growing industries like AI data centers.
Shares of Lincoln Educational Services (NASDAQ:LINC) spiked 24% on Monday after the vocational and technical skills provider boosted its full-year revenue forecast.
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Enrollment is swelling
Lincoln Educational's revenue jumped 12.6% year over year to $159 million in the third quarter.
As the cost of four-year university degrees continues to rise, more students are turning to faster, more affordable educational programs.
Lincoln Educational's student starts climbed 14.2% to 7,362, while its ending student population increased by 11.4% to 20,325.
"The strong starts reflect our organization's flexibility and responsiveness to a dynamic marketing environment where we continue to see robust demand for our high return-on-investment training," CEO Scott Shaw said.
Lincoln Educational is also helping to satisfy companies' need for trained technicians. As an example, its WorkforceLinc division trains students for careers in electrical systems and other fields serving the rapidly expanding data center industry.
"The demand for skilled workers remains far higher than supply," Shaw said.
All told, Lincoln Educational’s net income surged 24% to $4.7 million, or $0.15 per share.
New markets should fuel further growth
Management now expects full-year revenue of $600 million to $605 million in 2026, with student starts up 10% to 12%.
Lincoln Educational is expanding into new markets, with campus openings set for Arizona, Maryland, and New York in the coming years.
This expansion is part of the company's plan to grow its revenue to $850 million by 2030 as it works to meet the rising demand for practical and affordable education.
"The need for employees trained in the automotive, skilled trades, and healthcare fields continues its significant growth, and Lincoln Tech is providing an established, proven education and training model to help America address its chronic skills gap," Shaw said.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lincoln Educational Services. The Motley Fool has a disclosure policy.