KinderCare Learning Companies, Inc. (NYSE:KLC) shareholders are probably feeling a little disappointed, since its shares fell 8.3% to US$12.25 in the week after its latest first-quarter results. It looks like a credible result overall - although revenues of US$668m were what the analysts expected, KinderCare Learning Companies surprised by delivering a (statutory) profit of US$0.18 per share, an impressive 42% above what was forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, KinderCare Learning Companies' seven analysts are now forecasting revenues of US$2.78b in 2025. This would be a satisfactory 4.0% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with KinderCare Learning Companies forecast to report a statutory profit of US$0.82 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.81b and earnings per share (EPS) of US$0.80 in 2025. So the consensus seems to have become somewhat more optimistic on KinderCare Learning Companies' earnings potential following these results.

View our latest analysis for KinderCare Learning Companies

The average the analysts price target fell 13% to US$20.88, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic KinderCare Learning Companies analyst has a price target of US$26.00 per share, while the most pessimistic values it at US$15.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that KinderCare Learning Companies' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.3% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. Factoring in the forecast slowdown in growth, it seems obvious that KinderCare Learning Companies is also expected to grow slower than other industry participants.

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The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards KinderCare Learning Companies following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that KinderCare Learning Companies' revenue is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for KinderCare Learning Companies going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted  1 warning sign for KinderCare Learning Companies  you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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