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Earnings Roundup

Corinthian profit declines slightly

May 01, 2008|From Times Wire Services

For-profit education company Corinthian Colleges Inc. reported slightly lower quarterly profit, citing a loss from the sale of some schools, and said full-year earnings should come in at the low end of its previous forecast.

The Santa Ana-based company, which has scrambled to retain students after Sallie Mae said it would stop providing private loans, said it now required most students to make monthly cash payments.

It also has established a lending program and is working with third-party lenders to secure additional funds for students.

Even so, Corinthian said it expected the rate of enrollment growth to slow to about 6% to 7% this quarter.

Net income fell to $11.8 million, or 14 cents a share, in the third quarter ended March 31 from $12 million, or 14 cents, a year earlier.

Excluding a loss from the sale of some schools in Canada, profit rose to 16 cents a share from 15 cents, meeting the analysts' average forecast compiled by Reuters Estimates.

Corinthian said it expected full-year earnings to come in at the low end of its forecast of 40 cents to 45 cents a share.

Its shares rose $1.18 to $11.35 after the earnings news.

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