Laureate Education Inc. (LAUR) stock plummeted by 5.05% on Friday, following the company's Q4 2024 earnings release and 2025 guidance. Despite reporting strong results for 2024, with record high adjusted EBITDA margins and enrollment growth in both Mexico and Peru, the company's 2025 revenue outlook was dampened by currency headwinds.
In its earnings call, Laureate Education highlighted the continued economic uncertainties in Mexico, particularly related to the recent volatility in the Mexican peso. The company expects the weaker peso to create a significant translation impact on its reported US dollar revenue for 2025.
While Laureate Education forecasts total enrollments to grow 4-5% in 2025, and adjusted EBITDA to increase by 4-6% on a reported basis, the company's revenue guidance for the year was flat to down 1% due to the currency headwinds. The weaker revenue outlook, despite underlying growth in enrollments and profitability, appears to have disappointed investors, leading to the stock's sharp decline on Friday.