Corinthian Colleges, Inc. (NASDAQ:COCO), today stated that its net income for the 4th quarter went down by 90% as the student enrollment fell due to the hike in tuition fees and measures it took to comply with stricter government regulations.
The company’s adjusted results and 1st quarter forecast were less in comparison with the analysts’ estimates. The company’s shares fell down by 20% in the morning trading hours.
The company stated that the total new admission for the 4th quarter fell by 27% to below 25,000, and the total enrollment reduced by 15% to around 93,500.
The Net income went down to $3.4 million, or 5 cents per share, from $33.9 million, or 38 cents per share. On an adjusted basis, the company earned 13 cents per share. The Revenue went down by 11.6% to $425.2 million from $481.1 million earned in the previous year.
According to FactSet ,Analysts estimated the adjusted earnings at 12 cents per share and revenue of $432.2 million.
The company forecasted that its new student enrollment is likely to drop by 25% for the current quarter. I futher estimates to post a loss of 2 cents to 4 cents per share and revenue of $414 million to $424 million for the quarter.
However topped analysts estimated an adjusted net income of 14 cents per share and revenue of $427.9 million.
The company expects to earn 30 cents to 35 cents per share for the quarter ending in June’2012.
However the company recorded a net loss of $111.2 million, or $1.28 per share for the quarter ending on 30th june in comparison with a profit of $146 million, or $1.66 per share earned in the previous year. The company’s Revenue went up by 6.4% to $1.87 billion.
the company’s shares were down 37 cents, or 17.5% at $1.74 during the midday trading.
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