The 10-second takeaway
For the quarter ended March 31 (Q3), Corinthian Colleges missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share shrank significantly.
Margins shrank across the board.
Corinthian Colleges booked revenue of $424.1 million. The nine analysts polled by S&P Capital IQ foresaw a top line of $433.3 million on the same basis. GAAP reported sales were 8.3% lower than the prior-year quarter's $462.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.15. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.15 per share. GAAP EPS of $0.05 for Q3 were 74% lower than the prior-year quarter's $0.19 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.6%, 90 basis points worse than the prior-year quarter. Operating margin was 6.1%, 20 basis points worse than the prior-year quarter. Net margin was 1.0%, 250 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $402.9 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $1.66 billion. The average EPS estimate is $0.27.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 294 members out of 359 rating the stock outperform, and 65 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Corinthian Colleges a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Corinthian Colleges is hold, with an average price target of $4.03.
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