The Higher Education Act of 1965 requires that programs in need of federal aid must provide their students "gainful employment in a recognized profession."
DeVry averaged repayment rates of 40% at its universities last year. Strayer Education, like Corinthian's Everest colleges, averaged in the low 20s. The Washington Post's Kaplan came in slightly higher at weighted average of 28%, the company said.
At those levels, Strayer, Kaplan and Everest colleges would be ineligible for federal aid if the proposed legislation is enacted.
Santa Ana, Calif.-based Corinthian, which operates in 24 U.S. states and the Canadian province of Ontario, grew fiscal-fourth-quarter profits by 46.1% to $33.9 million, or 38 cents per share, up from $23.2 million, or 26 cents per share, in the year-earlier period.Despite the marked improvement, Corinthian's earnings missed expectations for earnings of $34.4 million, or 39 cents per share. Corinthian expects first-fiscal-quarter earnings per share in a range between 38 cents and 41 cents, while analysts' consensus call is for earnings of 45 cents per share. Revenue came in at $482.7 million, up 36.5% from $353.5 million in the fourth quarter of fiscal 2009, and beating expectations for revenue of $477.1 million. -- Reported by Miriam Marcus Reimer from New York. >>See our new stock quote page. Follow Miriam Marcus Reimer on Twitter and become a fan of TheStreet on Facebook. Get more stock ideas and investing advice on our sister site, Stockpickr.com.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV