Corinthian Colleges Earnings: Here’s Why Investors are Selling Shares Now
Corinthian Colleges Inc. (NASDAQ:COCO) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 5.77%.
Corinthian Colleges Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 54.55% to $0.05 in the quarter versus EPS of $0.11 in the year-earlier quarter.
Revenue: Rose 4.09% to $377.5 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Corinthian Colleges Inc. reported adjusted EPS income of $0.05 per share. By that measure, the company beat the mean analyst estimate of $0.03. It missed the average revenue estimate of $379.66 million.
Quoting Management: “In fiscal 2013 we continued to make operational improvements while managing through the loss of Ability-to-Benefit students,” said Jack Massimino, Corinthian chairman and chief executive officer. “We continued to focus on student completion and achieved a slight increase in our graduate placement rate despite a weak labor market. We reduced operating expenses to align with our lower student population and closed or sold underperforming campuses. We continued to increase the efficiency of our operations through increased automation and standardization in a number of areas, including online service center technology, faculty hiring and on-boarding, career services and compliance. On the regulatory front, we maintained our strong culture of compliance and continued to cooperate with regulators on several inquiries.”
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