Bright Horizons Family Solutions' (BFAM) continued upside in Backup Care, as well as potential share repurchases, could lead to a raise in full-year earnings per share guidance, UBS Securities said in an earnings preview Friday.
The company is scheduled to report its Q2 results on July 30.
The brokerage models Q2 revenue growth of 19% in Backup Care, up from 12% in Q1 and slightly above guidance of 15% to 17%, driven by continued summer capacity additions, the note added.
UBS expects $175 million in Q2 buybacks, with its EPS estimate of $1.26, above Street consensus of $1.20 and guidance of $1.17 to $1.22, largely driven by strong buyback activity.
The brokerage expects revenue guidance to be revised to $3.10 billion to $3.125 billion and adjusted EPS to $5.10 to $5.20, respectively, from $3.075 billion to $3.125 billion and $4.90 to $5.10, driven by buybacks and stronger Backup Care revenue.
The investment firm lifted its full-year 2026 and 2027 EPS estimates to $5.19 and $5.89, respectively, from $5.08 and $5.70.
UBS kept a neutral rating on Bright Horizons and lowered its price target to $87 from $88.
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