Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.

Why Shares of Bridgepoint Education Inc. Fell

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 Bridgepoint Education Inc  (NYSE: BPI  ) were getting held back today, falling as much as 15% and finishing down 9% after issuing poor preliminary results from its first quarter. 

So what: The for-profit educator missed estimates on both the top and bottom lines, posting a a per-share loss of $0.10 against estimates of a penny loss, while revenue fell 28% to $160.5 million, missing expectations of $170.4 million. Also concerning was the company's notice that it will be unable to file its 10-Q report on time because of an earlier comment from the SEC about Bridgepoint's revenue recognition and bad debt allowance accounting policies. Bridgepoint said that for the quarter past, using the SEC's method would result in a decrease in revenue of $0.7 million and a decrease in bad debt expense of $0.2 million, so the difference does not seem material.

Now what: Returning to the company's operations, the poor results were primarily a consequence of enrollment falling 16.5% from a year ago at its two universities, Ashford and University of the Rockies. Despite the decline, CEO Andrew Clark noted a sequential increase in enrollments and student retention because of a "substantial investment in student outcomes." Declining enrollment has been a problem across the industry and seems to be the principal obstacle for Bridgepoint going forward as the accounting issue seems easily corrected, provided there aren't other questionable statements yet to come out.

Your credit card may soon be completely worthless
The plastic in your wallet is about to go the way of the typewriter, the VCR, and the 8-track tape player. When it does, a handful of investors could stand to get very rich. You can join them -- but you must act now. An eye-opening new presentation reveals the full story on why your credit card is about to be worthless -- and highlights one little-known company sitting at the epicenter of an earth-shaking movement that could hand early investors the kind of profits we haven't seen since the dot-com days. Click here to watch this stunning video.

Read/Post Comments (0) | Recommend This Article (1)

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.

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: 2954377, ~/Articles/ArticleHandler.aspx, 3/28/2015 1:55:35 PM

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...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!