Education and training services provider
said its third-quarter earnings fell 62.3% from a year ago because of lower operating margins and revenue.
The Hoffman Estates, Ill.-based company earned $20.7 million, or 22 cents a share, in the quarter compared with $54.9 million, or 53 cents a share, for the year-ago period. After adjusting for a stock options expense of 4 cents a share, latest quarter earnings would be 26 cents a share. Analysts polled by Thomson First Call were expecting earnings of 28 cents for the quarter.
Third-quarter revenue fell 7% to $462.4 million.
Operating income fell 66% to $28.3 million, owing to fall in operating margins by 1,070 basis points.
Total student population as of Oct. 31 was 99,600, down from 107,400 a year ago.
"Although third-quarter results were disappointing, the board and management of Career Education Corporation took a number of significant steps during the quarter to resolve our current issues, improve our operating results, and lay the foundation for future growth," the company said.
"The potential for our company and our industry remains very strong, and we aim to steadily build value for all of our stakeholders going forward. Initially, we are focused on finding the best leadership for the company, specifically a permanent CEO, and strengthening key internal positions."
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