K12 (LRN) Stock Plunges Despite Earnings, Revenue Beat

NEW YORK (TheStreet) -- K12  (LRN) plunged Thursday despite the company's fourth-quarter earnings that beat analysts' expectations.

The company, which sells online schooling and curricula to state and local governments, reported earnings of 32 cents a share, which beat the consensus estimate of 21 cents a share. Revenue rose 14.2% year-over-year to $232 million, which surpassed analysts' expectations of $221.04 million.

K12 did not offer guidance for the full-year 2015 but announced it would do so in October.

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The stock was down 12.92% to $19.50 at 3:18 p.m. More than 1.9 million shares had changed hands, compared to the average volume of 292,494.

Separately, TheStreet Ratings team rates K12 INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate K12 INC (LRN) 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 revenue growth, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity."

You can view the full analysis from the report here: LRN Ratings Report

LRN Chart LRN data by YCharts

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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