Career Education Profits Rise

They beat estimates.

Author:: TSC and IRIS Staff
Publish date:: Feb 16, 2006 5:09 PM EST

Education and training services provider

Career Education

said fourth-quarter earnings rose 12%, helped by higher revenue.

The company earned $70.2 million, or 70 cents a share, compared with $62.8 million, or 59 cents a share. Analysts polled by Thomson First Call were expecting earnings of $67.27 million, or 67 cents a share, in the most recent quarter.

Fourth-quarter revenue rose 8% from a year ago to $529.1 million. Analysts were estimating revenue of $527 million in the fourth quarter.

For 2006, the company expects an earnings growth of 10% to 12%, while revenue is expected to increase 10%, compared with the previous year. It expects non-cash stock-option expenses of $17 million to $18 million.

Earnings rose 12% mainly due to higher revenue, led by a 8% rise in the student population.

The board of directors has authorized a stock repurchase of $200 million in addition to the $100 million available under the previous program.

This story was created through a joint venture between TheStreet.com and IRIS.