Bridgepoint Education posts so-so results

Career College Central Summary:

  • San Diego’s Bridgepoint Education missed Wall Street’s estimates for revenue and earnings for its third quarter on lower student enrollment than last year.
  • The for-profit college company announced results Wednesday as markets opened. Revenue was $162.7 million, compared with $183 million for the same quarter last year. Net income came in at $6.3 million, or 14 cents per share, down from net income of $14.2 million, or 25 cents per share, for the quarter a year ago.
  • Analysts expected revenue of $169.8 million and earnings of 16 cents per share, according to Yahoo Finance.
  • Total student enrollment at Bridgepoint’s Ashford University and University of the Rockies was 59,552 students, down from 68,566 students at the end of the third quarter last year. The company laid off 223 workers companywide earlier this week to align its workforce with student enrollment.
  • Chief Executive Andrew Clark said new student enrollment is up for the past two quarters, and student retention is better than it has been in the past. He predicted the company would see year-over-year enrollment gains by mid-2015.
  • Bridgepoint revamped its student recruiting practices after an accreditation crisis in 2012-’13, focusing more on attracting students who were better prepared for college.
  • “We view these positive results as evidence that the numerous quality and process improvements we have put in place are producing a more committed and better prepared student body that is retaining at higher rates,” said Clark in a conference call with analysts.

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