BUZZ-KinderCare hits all-time low on weak revenue forecast

Reuters
03-22
BUZZ-KinderCare hits all-time low on weak revenue forecast

** Shares of early childhood education provider KinderCare KLC.N fall 21% to all-time low of $13.94 after disappointing FY 2025 revenue forecast

** KLC expects FY 2025 revenue to be between $2.75 billion and 2.85 billion, lower end of which is well below analysts' avg. expectation of 2.86 bln - data compile by LSEG

** At least three brokerages cut PT on stock

** Morgan Stanley points out increased risk to revenue from potential changes to government subsidies under new administration

** "Investors have been skeptical of companies' revenue sources that rely on the Federal government, and KLC receives 35% of revenue from government subsidies," brokerage says

** Including session's move, stock has fallen 17.7% YTD

(Reporting by Ragini Mathur in Bengaluru)

((Ragini.Mathur@thomsonreuters.com;))

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