Corinthian Colleges Posts Q2 Profit, Tops Market

Corinthian Colleges Inc reported a second-quarter profit that beat market estimates as the new student enrollment declined at a slower pace from last year, and the for-profit education provider forecast a strong third quarter.

Corinthian forecast third-quarter earnings of 15 cents to 17 cents, versus analysts' average estimate of 13 cents. It expects new student enrollment to be flat in the quarter.

Santa Ana, California-based Corinthian's second-quarter new student enrollment fell at a moderate pace of 3 percent.

The company, which runs the Everest, Heald and WyoTech campuses, has been facing a sharp decline in student numbers after it tightened admission standards to comply with new education rules.

Corinthian's October-December net income was $1.8 million, or 2 cents a share, compared with a net loss of $163.7 million, or $1.94 a share, a year ago. On a adjusted basis, the company earned 4 cents a share.

Revenue fell 14 percent to $415.5 million.

Analysts on average had expected earnings of 1 cent a share, on revenue of $415.2 million, according to Thomson Reuters I/B/E/S.

Shares of the company closed at $3.03 on Tuesday on the Nasdaq.

REUTERS

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