I am downgrading KinderCare Learning from buy to hold due to underperformance and significant political risks affecting revenue. KLC's core business trends remain weak, with flat occupancy and reliance on pricing rather than volume for growth. Government funding risks, particularly potential cuts to childcare subsidies, add uncertainty and pressure on KLC's financial outlook.
KinderCare Learning Companies has seen its stock plummet nearly 50% below its IPO price due to mispricing and disappointing earnings reports. Major concerns include high reliance on federal subsidies, high debt levels, and tepid growth prospects, making KLC a risky investment. Despite a large market opportunity, the Company's 2025 outlook is tepid, with flat occupancy growth and lowered pricing power, deterring immediate investment.
KinderCare Learning Companies, Inc. (NYSE:KLC ) Q4 2024 Results Earnings Conference Call March 20, 2025 5:00 PM ET Company Participants Olivia Kirrer - Vice President, Growth Finance and M&A Paul Thompson - Chief Executive Officer Tony Amandi - Chief Financial Officer Conference Call Participants Andrew Steinerman - J.P. Morgan Toni Kaplan - Morgan Stanley Ronan Kennedy - Barclays George Tong - Goldman Sachs Jeff Silber - BMO Faiza Alwy - Deutsche Bank Jeffrey Meuler - Baird Joshua Chan - UBS Operator Welcome to KinderCare's fourth quarter earnings conference call.
12 Aug 2025 (In 2 weeks) Date | | 0.24 Cons. EPS | - EPS |
14 May 2025 Date | | 0.17 Cons. EPS | 0.23 EPS |
21 Mar 2025 Date | | 0.05 Cons. EPS | 0.09 EPS |
21 Nov 2024 Date | | - Cons. EPS | 0.05 EPS |
12 Aug 2025 (In 2 weeks) Date | | 0.24 Cons. EPS | - EPS |
14 May 2025 Date | | 0.17 Cons. EPS | 0.23 EPS |
21 Mar 2025 Date | | 0.05 Cons. EPS | 0.09 EPS |
21 Nov 2024 Date | | - Cons. EPS | 0.05 EPS |
Education & Training Services Industry | Consumer Defensive Sector | Paul Thompson CEO | NYSE Exchange | 49456W105 Cusip |
US Country | 43,690 Employees | - Last Dividend | - Last Split | - IPO Date |