Enrollments Fuel Corinthian Colleges Net Income

SANTA ANA, Calif. (AP) — Corinthian Colleges Inc. said Thursday that unemployment near 10 percent drove more students to its schools, boosting fiscal first-quarter profit by nearly sixfold.

The for-profit education company also raised its guidance for its 2010 fiscal year, sending its shares higher.

Corinthian said total students grew by almost 26 percent from the year-ago period to 93,493. High unemployment and a tight job market drives the unemployed and underemployed to seek additional degrees and career-training classes at education providers like Corinthian.

The company said net income rose to $32.9 million, or 37 cents per share, from $5.5 million, or 6 cents per share in the same period last year. Sales rose 34.2 percent to $388.5 million from $289.6 million.

Analysts polled by Thomson Reuters expected earnings per share of 28 cents and sales of $377.9 million for the period ended Sept. 30.

In morning trading, shares of Corinthian advanced $1.13, or 6.8 percent, to $17.83. The stock has ranged from $12.26 to $21.73 over the past year.