Capella Education Earnings: Here’s Why Investors are Excited Now

Capella Education Co. (NASDAQ:CPLA) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 8.87%.

Capella Education Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 2.35% to $0.83 in the quarter versus EPS of $0.85 in the year-earlier quarter.

Revenue: Decreased 2.34% to $103.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Capella Education Co. reported adjusted EPS income of $0.83 per share. By that measure, the company beat the mean analyst estimate of $0.66. It beat the average revenue estimate of $102.66 million.

Quoting Management: “We are very pleased with our performance in the second quarter and continue to be encouraged by the progress we are making in a still difficult market environment,”said Kevin Gilligan, chairman and chief executive officer. “The pace of innovation at Capella positions us to drive further differentiation and build a long-term sustainable business model designed to create learner and shareholder value.”

Key Stats (on next page)…

Revenue decreased 1.46% from $105.24 million in the previous quarter. EPS increased 18.57% from $0.70 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.4 to a profit $0.41. For the current year, the average estimate has moved down from a profit of $2.54 to a profit of $2.53 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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