National American University Holdings Earnings: Profit Streak Snapped by a Loss

National American University Holdings Inc. (NASDAQ:NAUH) swung to a loss in the first quarter, missing analysts’ forecast. National American University is the provider of post-secondary education primarily focused on the needs of working adults and other non-traditional students. It provides Associate, Bachelor’s, and Master’s degree and diploma programs.

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National American University Holdings Inc. Earnings Cheat Sheet

Results: Reported a loss of $164,000 (one cent per diluted share) in the quarter. National American University Holdings Inc. had a net income of $1 million or 4 cents per share in the year-earlier quarter.

Revenue: Rose 16% to $29.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: National American University Holdings Inc. fell short of the mean analyst estimate of 3 cents per share. It fell short of the average revenue estimate of $30.3 million.

Quoting Management: Ronald L. Shape, Ed.D., Chief Executive Officer of the Company, commented, “We were pleased to achieve double-digit growth in enrollment and revenue in the summer 2012 term, which tends to be a seasonally weaker period. Despite the continued difficult climate in our industry, NAU’s enrollment increased 10.2% from the same period last year to 10,350 students. We continue to focus on our strategic goals for fiscal 2013, transitioning from geographic expansion to growing enrollment at our current locations, reducing expenditures to build efficiencies, and achieving greater economies of scale. We anticipate we will continue to see improvement over the next several quarters as the newer locations contribute to the Company’s top line growth.”

Key Stats:

Revenue has risen for the last four quarters. Revenue increased 18% to $33.1 million in the fourth quarter of the last fiscal year. The figure rose 8% in the third quarter of the last fiscal year from the year earlier and climbed 9.4% in the second quarter of the last fiscal year from the year-ago quarter.

The company’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $1.6 million in the fourth quarter of the last fiscal year, a profit of $519,000 in the third quarter of the last fiscal year and $1.9 million in the second of the last fiscal year.

For two quarters in a row, the company has come in under analyst estimates. In the fourth quarter of the last fiscal year, it missed expectations by 5 cents with net income of 2 cents versus a mean estimate of net income of 7 cents per share.

For the fiscal year, the average estimate has moved down from 17 cents a share to 16 cents over the last sixty days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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