Career Education Shares Got Crushed: What You Need to Know

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of for-profit education company Career Education (Nasdaq: CECO  ) clearly deserved detention today after falling as much as 19% in intraday trading.

So what: The trigger for the plunge was Career Education's fourth-quarter earnings report. Revenue for the quarter fell 17% from last year, to $440 million, while an operating profit of $18 million in the prior year was reversed to a $169 million operating loss. Though adjusted earnings per share fell drastically YOY, they remained in the black and managed to top analysts' estimates.

Now what: It's been a rough go of it for the for-profit education sector over the past couple of years and while pretty much all of the industry participants have ended up under the storm cloud, some were hit a bit harder than others. Career Education found itself in the latter group and had its CEO step down late last year after it was found that some of the company's schools were misreporting job-placement rates.

The road ahead will be a tough one for Career Education. That's reflected in the big drop in financial results as well as the 14% YOY dip in student population. However, it may be even more evident in the fact new student starts -- which provide a peek into future results -- fell 24% from 2010.

Want to keep up to date on Career Education? Add it to your Watchlist.

Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1795758, ~/Articles/ArticleHandler.aspx, 10/25/2016 8:44:16 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 11 hours ago Sponsored by:
DOW 18,223.03 77.32 0.43%
S&P 500 2,151.33 10.17 0.47%
NASD 5,309.83 52.43 1.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/24/2016 4:00 PM
CECO $7.16 Up +0.07 +0.99%
Career Education CAPS Rating: *