Corinthian Colleges Inc. Earnings Cheat Sheet: Reversing to a Loss Following Two Consecutive Quarters of Profit

Corinthian Colleges Inc. (NASDAQ:COCO) swung to a loss in the first quarter, missing analysts’ forecast. Corinthian Colleges is a post-secondary education company in North America. The company’s mission is to prepare students for careers in demand or for advancement in their chosen field.

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

Corinthian Colleges Earnings Cheat Sheet for the First Quarter

Results: Reported a loss of $9.6 million (11 cents per diluted share) in the quarter. The education and training services company had net income of $33.1 million or 38 cents per share in the year earlier quarter.

Revenue: Fell 17.3% to $414 million from the year earlier quarter.

Actual vs. Wall St. Expectations: COCO reported an adjusted net loss of 4 cents per share. By that measure, the company fell short of the mean analyst estimate of a loss of 2 cents per share. Analysts were expecting revenue of $417.7 million.

Quoting Management: “As anticipated, the rate of new student enrollment growth declined in the first quarter,” Jack Massimino, Corinthian chairman and chief executive officer, said. “The decline is the result of several factors, including our decision to reduce the risk profile of our students, general economic conditions, and tuition increases implemented in the second half of fiscal 2011. We expect the rate of year-over-year new enrollment declines to slow significantly in the second quarter and then turn positive in the last half of fiscal 2012.”

Key Stats:

Revenue has fallen for the past three quarters. In the fourth quarter of the last fiscal year, revenue declined 12.6% to $421.9 million while the figure fell 3.3% in the third quarter of the last fiscal year from the year earlier.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 14 cents versus a mean estimate of net income of 12 cents per share.

The company’s loss in the latest quarter follows profits in the previous two quarters. The company reported a profit of $3.4 million in the fourth quarter of the last fiscal year and a profit of $16.1 million in the third quarter of the last fiscal year.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the second quarter is one cent per share, down from 5 cents ninety days ago. At 17 cents per share, the average estimate for the fiscal year has fallen from 35 cents ninety days ago.

Competitors to Watch: Apollo Group, Inc. (NASDAQ:APOL), Career Education Corp. (NASDAQ:CECO), American Public Education, Inc. (NASDAQ:APEI), National American Univ. Hldgs., Inc. (NASDAQ:NAUH), DeVry Inc. (NYSE:DV), Grand Canyon Education Inc (NASDAQ:LOPE), Education Management Corp (NASDAQ:EDMC), Strayer Education, Inc. (NASDAQ:STRA), Bridgepoint Education, Inc. (NYSE:BPI), and Lincoln Educational Services Corp. (NASDAQ:LINC).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)