NEW YORK (AP) — Shares of Career Education Corp. rose and stock in American Public Education Inc. fell after hours Thursday following first-quarter earnings reports from the two for-profit education companies.
Career Education said its profit fell 29 percent as enrollment declined for the quarter. Its net income was $57.5 million, or 78 cents per share, compared with $81.4 million, or 95 cents per share, a year earlier.
The results included one-time gains of 18 cents per share from an insurance recovery and 9 cents per share from discontinued operations.
That implies adjusted earnings of 51 cents per share at most, but that is much higher than the average forecast for adjusted earnings of 25 cents per share from analysts surveyed by FactSet.
Career education's revenue for the quarter fell 18 percent, to $434.1 million, from $531.7 million, but that still beat analysts' average forecast for $429.6 million, according to FactSet.
The Schaumburg, Ill., company said its student population shrank 18 percent to 95,900. Enrollment at its health education school, formerly its largest, fell 27 percent to 22,900. New student starts dropped 27 percent to 23,090.
Shares of Career Education climbed 50 cents, or 7.1 percent, to $7.50 after hours. They had risen a penny in regular trading to close at $7.
Online university operator American Public Education said its profit, revenue and enrollment all improved. But it offered a gloomier second-quarter forecast than Wall Street expected.
The Charles Town, W. Va., company said its income rose to $9.1 million, or 50 cents per share, from $7.9 million, or 43 cents per share. Revenue grew 29 percent, to $75.8 million from $58.7 million.
Analysts were forecasting a smaller profit of 47 cents per share and $74.9 million in revenue on average.
American Public Education said it had 119,200 active students during the period, up 32 percent from a year ago. Net course registrations rose 24 percent to 101,000.
The company expected adjusted earnings of 41 cents to 47 cents per share for the current quarter and revenue 14 percent to 22 percent higher than a year earlier, for a total of $69.3 million to $74.2 million
Analysts were calling for a bigger profit of 51 cents per share and $74.4 million in revenue.
Shares of American Public Education dropped $2.92, or 9.2 percent, to $28.95 after hours. They had risen 3.2 percent in regular trading to close at $31.87.
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