KinderCare hits all-time low on weak revenue forecast
** Shares of early childhood education provider KinderCare
K
KLC
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