Capella Education Earnings: Here’s Why the Stock is Rising 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 16%.

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Capella Education Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 14.63% to $0.70 in the quarter versus EPS of $0.82 in the year-earlier quarter.

Revenue: Decreased 3.84% to $105.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Capella Education Co. reported adjusted EPS income of $0.70 per share. By that measure, the company beat the mean analyst estimate of $0.62. It beat the average revenue estimate of $103.99 million.

Quoting Management: “We are pleased with our execution during the first quarter as we compete more effectively in a challenging market environment, while positioning Capella for long-term sustainable growth,” said Kevin Gilligan, chairman and chief executive officer. “Our confidence in our ability to return to total enrollment growth in the first half of 2014 is increasing.”

Key Stats (on next page)…

Revenue decreased 1.68% from $107 million in the previous quarter. EPS decreased 4.11% from $0.73 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.79 to a profit $0.69. For the current year, the average estimate has moved down from a profit of $2.72 to a profit of $2.50 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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