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What: Shares of for-profit education company Strayer Education
So what: Let's go with the good news first. For the final quarter of the year, Strayer's results were better than expected. The company reported $2.30 in earnings per share on $156 million in revenue. Though both results were lower than the year before, Wall Street had expected revenue of $155 million and per-share profit of just $2.26.
Now what: Though the fourth quarter's numbers were a pleasant surprise, investors were less than thrilled about Strayer's signals about what might lie ahead. The decline in enrollment seems to be moderating, but the company still reported an 8% decrease in new student enrollments. For obvious reasons, fewer students portend lower results for an educator like Strayer. At the same time, management projected first-quarter earnings per share of between $2.07 and $2.09, well below the current average analyst estimate of $2.24.
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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.
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