In an industry so hot that it's spawned references to Pink Floyd, Corinthian Colleges
On the strength of three completed acquisitions and new online programs, the operator of post-secondary schools saw first-quarter net income jump 41% to $19.4 million, or $0.41 per share, as revenues rose 46.3% to $168.2 million. Same-school starts again saw a double-digit gain, accelerating 15% and helping same-school revenue grow 26.2%. With the acquisitions, starts in all schools jumped 48% to 22,915.
Education has gained popularity through the downturn, as jobs have become harder to come by. And this sector just keeps heating up.
Last week, fellow consolidator Career Education Corp
Expect the trend to continue. Corinthian noted that it expected full-year revenues to jump 52%, as it raised its full-year EPS estimate to $1.88 to share. The company also said that it would see continued organic sales growth beyond next year in the 20% to 25% range. If you account for the company's largely successful acquisition strategy, you can only expect more good things from Corinthian Colleges in the future.
Back in October 2001, Brian Lund picked the stock in TMF Select (now Motley Fool Hidden Gems) at a split-adjusted $16.70 per share. Following the strong earnings report and stronger outlook, Corinthian closed up over 8% to $61.50 -- a new all-time high.
Jeff Hwang can be reached at JHwang@fool.com.
More from The Motley Fool
How Ultra Clean Holdings, Inc. Stock Rose 138% in 2017
The chipmaking equipment builder ended a banner year on a somewhat sour note in 2017. Here's what's next.
McDonald's Corporation Earnings: What to Watch
Mark your calendar. Later this month, investors will look for McDonald's to keep up its strong momentum.
Why Under Armour, Avis Budget Group, and comScore Slumped Today
Find out which of these companies issued preliminary results and warned about the upcoming year.