Cogna (COGN3) plunges double digits after earnings By Investing.com

Investing.com – Cogna (BVMF:) shares collapsed in the trading session this Thursday, 9th, as a result of its quarterly balance sheet with an accounting loss, despite the highlight in attracting students from Kroton. At 10:40 am (Brasília time), the shares were down 14.78%, at R$1.96.

The educational sector company reported adjusted net profit of R$50.5 million, an annual drop of 57.1%. However, according to accounting criteria, without adjustments, it reported a loss of R$8.512 million, compared to a profit of R$54.386 million a year earlier.

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Genial Investimentos assessed the balance sheet as tepid, mentioning positive and negative points. “On the positive side, we see that the company presented a strong cycle of recruiting students at Kroton at the beginning of this year, also surprising in terms of revenue growth in the Saber vertical.” However, on the negative side, profit disappointed, given higher marketing investments, as well as non-recurring expenses.

“We already believed that there would be a compression in EBITDA margin, given the strong comparative basis and also the marketing efforts directed at Kroton for early funding this year. Even so, operational profitability was lower than expected”, lamented Genial, which expected a profit of R$6 million. The recommendation for the stock is neutral, with a target price of R$2.70.

XP Investimentos (BVMF:) considered the results mixed, also highlighting the funding from Kroton. “We observed a compression of 4.7 pp in the adjusted EBITDA margin, caused by a change in the seasonality of marketing expenses”, highlights XP, which also cites some warning signs, such as the compression of Kroton’s margin and the reduction in ACV from Vasta. However, with the solid funding from Kroton, XP believes in expanding revenues and margins in the quarters to come.

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Regarding the company’s debt, with net leverage adjusted at 3.0x adjusted Ebitda, XP says it does not consider the indicator “unhealthy”, but expects Cogna to continue looking for improvements on this front.

Cogna on InvestingPro

O InvestingPro, Investing.com’s premium platform, indicates that the company operates with a moderate level of debt and the share price has declined significantly in the last five years. Protips, artificial intelligence (AI) insights based on fundamental indicators, also point out that the valuation implies a low return on free cash flow.

Cogna’s financial health is assessed as fair performance, with a score of two, on a metric that ranges from one to five. The platform does not have a target price for the company.

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