Corinthian Colleges Beats Expectations but Takes a Step Back Anyway

Corinthian Colleges (NAS: COCO) reported earnings today. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Corinthian Colleges met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share expanded.

Gross margins dropped, operating margins shrank, net margins improved.

Revenue details
Corinthian Colleges logged revenue of $415.5 million. The nine analysts polled by S&P Capital IQ looked for sales of $415.3 million. Sales were 14% lower than the prior-year quarter's $482.8 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.04. The 11 earnings estimates compiled by S&P Capital IQ anticipated $0.01 per share on the same basis. GAAP EPS were $0.02 for Q2 compared to -$1.94 per share for the prior-year quarter.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 38.5%, 150 basis points worse than the prior-year quarter. Operating margin was 2.4%, 440 basis points worse than the prior-year quarter. Net margin was 0.4%, 3,430 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $427.9 million. On the bottom line, the average EPS estimate is $0.13.

Next year's average estimate for revenue is $1.66 billion. The average EPS estimate is $0.24.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 312 members out of 374 rating the stock outperform, and 62 members rating it underperform. Among 102 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 84 give Corinthian Colleges a green thumbs-up, and 18 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 $2.53.

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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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