SANTA ANA, Calif. (TheStreet) -- Corinthian Colleges (COCO) beat top- and bottom-line expectations for its 2011 fiscal second quarter, but the postsecondary education provider forecast slower student enrollment growth and said it plans to raise tuition fees and trim its workforce.
Corinthian said early Tuesday it earned adjusted quarterly profits of $19.1 million, or 23 cents per share, beating Wall Street's expectations for earnings of $19 million, or 22 cents per share.
Corinthian said it took $206.0 million in impairment, facility closing and severance charges in the recent quarter. Unadjusted for those one-time items, Corinthian booked net losses of $163.7 million, or $1.94 loss per share, compared with year-earlier profits of $39.4 million, or 44 cents per share. Analysts typically exclude such extraordinary items when forecasting earnings estimates.Corinthian said its total student population grew 13.3% year-over-year to 105,498, as of Dec. 31, but that on a pro forma basis, including the Heald student population, the company's total student roster decreased 0.5%. Corinthian completed its acquisition of Heald Capital, the parent company of Heald College, in January of 2010. Total new students decreased 8% to 26,831. On a pro forma basis, new student growth declined 17.7%. Even so, investors were pleased with Corinthian's current-quarter outlook, which was in line with analysts' consensus, bidding Corinthian shares 5.1% higher in morning trading Tuesday to $5.55. Corinthian forecast fiscal-third quarter revenue in a range between $462 million and $472 million, with earnings-per-share in a range of 20 cents to 22 cents. It also said new student growth should decline between 15 cents and 17 cents.
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