The company posted a net loss of 71 cents a share, far worse than the Capital IQ Consensus Estimate of a loss of 42 cents a share. Revenue declined 14.6% year over year to $243.1 million. well short of the consensus estimate of $261.92 million.
Career Education attributed the decline to the approximately 4,400 fewer total student enrollments year over year in its ongoing institutions, which exclude Transitional Schools. The Transitional Schools accounted for 4.1% of the revenue decrease. Total student enrollment fell 12% year over year to 55,700, while new student enrollment declined 6% year over year to 16,030.
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The stock was down 28.96% to $4.76 at 3:36 p.m.
Separately, TheStreet Ratings team rates CAREER EDUCATION CORP as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate CAREER EDUCATION CORP (CECO) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share."