Share Price Performance and Market Outlook
Cogna Educação’s shares reached 2.78 reais, equivalent to 57 U.S. cents, representing a 24% increase since the end of last year. This positive performance surpassed Brazil’s benchmark Ibovespa stocks index, which recorded a 0.5% increase in mid-morning trading.
During the third quarter, Cogna Educação reported a significant decrease in net loss compared to the previous year, reaching BRL102.6 million. Furthermore, the recurring net loss improved to BRL44.1 million from BRL147.5 million reported in the same period last year.
Factors Contributing to Strong Performance
Citi Research analysts Leandro Bastos and Renan Prata highlighted several factors that contributed to Cogna Educação’s strong performance. The company exceeded expectations in terms of EBITDA, which can be attributed to stronger fixed-cost dilution and lower bad debt expenses.
The positive price trend, coupled with improvements in student retention for both high-attendance and low-attendance students, further bolstered Cogna Educação’s quarterly results.
Cogna Educação’s third-quarter results reflect a promising financial performance with better-than-expected revenue and improving price trends. The company’s efforts to reduce net loss and improve EBITDA have positively impacted its overall financial health.