Career Education Beats on Both Top and Bottom Lines
Career Education (NAS: CECO) reported earnings on May 10. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Career Education beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Career Education reported revenue of $434.1 million. The nine analysts polled by S&P Capital IQ anticipated sales of $429.6 million on the same basis. GAAP reported sales were 20% lower than the prior-year quarter's $543.4 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 $0.41. The nine earnings estimates compiled by S&P Capital IQ forecast $0.24 per share. GAAP EPS of $0.77 for Q1 were 19% lower than the prior-year quarter's $0.95 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 64.8%, 410 basis points worse than the prior-year quarter. Operating margin was 10.8%, 880 basis points worse than the prior-year quarter. Net margin was 12.0%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $389.4 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $1.56 billion. The average EPS estimate is $0.47.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 173 members out of 198 rating the stock outperform, and 25 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Career Education a green thumbs-up, and seven 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 $8.63.
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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.
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