The 10-second takeaway
For the quarter ended Sep. 30 (Q1), Corinthian Colleges beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share increased.
Margins expanded across the board.
Corinthian Colleges notched revenue of $408.6 million. The 10 analysts polled by S&P Capital IQ anticipated sales of $398.6 million on the same basis. GAAP reported sales were 1.3% lower than the prior-year quarter's $414.0 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 $0.06. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.04 per share. GAAP EPS were $0.02 for Q1 versus -$0.11 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.3%, 250 basis points better than the prior-year quarter. Operating margin was 3.4%, 410 basis points better than the prior-year quarter. Net margin was 0.4%, 270 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $405.5 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $1.61 billion. The average EPS estimate is $0.34.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 289 members out of 368 rating the stock outperform, and 79 members rating it underperform. Among 92 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give Corinthian Colleges a green thumbs-up, and 27 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 $2.21.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. 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 Motley Fool has a disclosure policy.