Lincoln Educational Services Earnings: Here’s Why Investors are Happy Now

Lincoln Educational Services Corporation (NASDAQ:LINC) had a loss and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.96%.

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Lincoln Educational Services Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.29 in the quarter versus EPS of $-0.14 in the year-earlier quarter.

Revenue: Decreased 14.08% to $90.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Lincoln Educational Services Corporation reported adjusted EPS loss of $0.29 per share. By that measure, the company beat the mean analyst estimate of $-0.31. It missed the average revenue estimate of $90.33 million.

Quoting Management: “Early 2013 results show a stabilization of our operations,” said Shaun McAlmont, Lincoln’s Chief Executive Officer. “Our regulatory record remains strong, our student outcomes are improving and our Lincoln Edge program is improving financial literacy and maintaining impressive student persistence rates. Excluding the decline in online and ATB students as a result of the discontinuation of these programs and excluding starts from short programs, new student starts from continuing operations are down 13.4% in the first quarter. We expect this number will turn to positive year over year growth in the second quarter. Our efforts are producing results and we expect a return to positive earnings in the second half of the year.”

Key Stats (on next page)…

Revenue decreased 3.45% from $93.32 million in the previous quarter. EPS decreased to $-0.29 in the quarter versus EPS of $0.31 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 loss of $0.09 to a loss $0.16. For the current year, the average estimate has moved down from a profit of $0.03 to a loss of $0.05 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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