Why Bridgepoint Education (BPI) Stock Is Tanking On Monday

NEW YORK (TheStreet) -- Shares of Bridgepoint Education Inc. (BPI) are down -7.66% to $14.70 on Monday after the company reported a -$4.4 million net loss for the 2014 first quarter, compared to $23.5 million in net income from the previous year.

In its preliminary first quarter report, the post-secondary education services provider announced a loss of -10 cents per share for the most recent quarter versus earnings of 43 cents per share from the same period last year.

Bridgepoint reported a decline in revenue to $160.5 million from $222 million for the 2013 first quarter.

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TheStreet Ratings team rates BRIDGEPOINT EDUCATION INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate BRIDGEPOINT EDUCATION INC (BPI) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • 46.19% is the gross profit margin for BRIDGEPOINT EDUCATION INC which we consider to be strong. Regardless of BPI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BPI's net profit margin of -3.95% significantly underperformed when compared to the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Diversified Consumer Services industry. The net income has significantly decreased by 135.2% when compared to the same quarter one year ago, falling from $18.37 million to -$6.46 million.
  • Net operating cash flow has significantly decreased to $21.26 million or 57.13% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • You can view the full analysis from the report here: BPI Ratings Report
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