Career Education Sinks on Guidance

Earnings beat estimates, but the company previews a revenue miss.
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Second-quarter earnings shot up 44% from last year at

Career Education

(CECO) - Get Report

, but lackluster guidance left the stock trading lower after hours.

The college operator earned $52.8 million, or 50 cents a share, in the quarter, compared with $56.6 million, or 35 cents a share, a year ago. The latest quarter had a charge of 1 cent a share related to an

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investigation and other matters. Analysts had been forecasting 47 cents a share.

Sales rose 23% from a year ago to $497.5 million, about $3 million short of estimates.

Career Ed expects to earn 50 cents to 52 cents a share on revenue of $498 million to $505 million in the third quarter. Analysts were expecting earnings of 52 cents a share on revenue of $528.2 million.

For the year, the company sees earnings of $2.20 to $2.29 a share, including a charge of 5 cents for discontinued operations, on sales of $2.04 to $2.07 billion. Analysts were forecasting earnings of $2.34 a share on revenue of $2.12 billion.

Shares fell $1.66, or 4.2%, to $37.46.

Total student population on July 31 was about 92,000, up 12% from a year ago. Total student population in its online education group on June 30 was about 30,000, up 70% from a year ago.