The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Career Education beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share contracted to a loss. GAAP loss per share shrank.
Gross margins dropped, operating margins dropped, net margins increased.
Career Education logged revenue of $354.7 million. The eight analysts polled by S&P Capital IQ foresaw revenue of $342.2 million on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $439.5 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 -$0.35. The seven earnings estimates compiled by S&P Capital IQ anticipated -$0.34 per share. Non-GAAP EPS were -$0.35 for Q4 against $0.31 per share for the prior-year quarter. GAAP EPS were -$0.93 for Q4 compared to -$1.64 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 60.1%, 440 basis points worse than the prior-year quarter. Operating margin was -10.1%, much worse than the prior-year quarter. Net margin was -17.3%, much better than the prior-year quarter.
Next quarter's average estimate for revenue is $345.2 million. On the bottom line, the average EPS estimate is -$0.07.
Next year's average estimate for revenue is $1.22 billion. The average EPS estimate is -$0.77.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 161 members out of 192 rating the stock outperform, and 31 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Career Education a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Career Education is hold, with an average price target of $3.46.
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