Capella Education Beats Expectations but Takes a Step Back Anyway
Capella Education (NAS: CPLA) reported earnings on April 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Capella Education met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share contracted.
Margins contracted across the board.
Capella Education chalked up revenue of $109.4 million. The 12 analysts polled by S&P Capital IQ looked for sales of $109.9 million on the same basis. GAAP reported sales were 1.8% lower than the prior-year quarter's $111.4 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 $0.82. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.78 per share. GAAP EPS of $0.82 for Q1 were 8.9% lower than the prior-year quarter's $0.90 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.2%, 460 basis points worse than the prior-year quarter. Operating margin was 16.4%, 540 basis points worse than the prior-year quarter. Net margin was 10.3%, 280 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $105.3 million. On the bottom line, the average EPS estimate is $0.80.
Next year's average estimate for revenue is $429.2 million. The average EPS estimate is $3.12.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 225 members out of 238 rating the stock outperform, and 13 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 61 give Capella Education a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Capella Education is hold, with an average price target of $44.09.
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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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