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Stock Market & Financial Investment News

News Breaks
February 28, 2014
12:07 EDTAPEI, DV, CECO, STRA, ESI, COCO, LOPE, BPI, APOLFor-profit education companies down after American Public profit miss
Shares of most for-profit education companies are falling after one of the companies in the sector, American Public Education (APEI), reported lower than expected fourth quarter profits, and provided much lower than expected first quarter profit guidance. WHAT'S NEW: American Public Education, which specializes in serving members of the military and public employees, reported Q4 earnings per share of 51c, versus analysts' consensus outlook of 54c. The company reported slightly higher than expected Q4 revenue, but predicted that its Q1 EPS would be 43c-48c, versus the consensus outlook of 67c. The company expects net course registrations by new students at its online university, American Public University System, to fall 7%-9% during the current quarter versus the same period a year earlier. On American Public's earnings conference call, the company noted that several branches of the military had made cuts and/or had implemented new restrictions o tuition assistance programs for their members. Uncertainty about these programs among service members, as well as confusion about eligibility requirements for them, have been at least partly responsible for continued soft demand for American Public's courses among members of the military, the company's CEO Wallace Boston stated. ANALYST REACTION: In a note to investors earlier today, Barrington Research analyst Alexander Paris wrote that American Public's total net registrations during Q4 were below analysts' consensus estimate. The stock's potential in the near-term is limited, as a result of price cuts by the company's competitors, and uncertainties about military funding, wrote Paris. He kept a Market Perform rating on the shares, but sees the company as an attractive long-term investment. PRICE ACTION: In late morning trading, ITT Educational (ESI) dropped 1.3% to $30.63, Strayer (STRA) retreated 1.7% to $48.25, Grand Canyon (LOPE) gave back 1.4% to $47.30, and American Public Education plunged 22% to $36.05. Other publicly traded companies in the space include Apollo Education (APOL), Bridgepoint Education (BPI), Career Education (CECO), Corinthian Colleges (COCO), and DeVry (DV).
News For APEI;DV;CECO;STRA;ESI;COCO;LOPE;BPI;APOL From The Last 14 Days
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August 26, 2014
07:25 EDTCOCO, ESIITT Educational has negative read through from Corinthian, says Wells Fargo
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August 25, 2014
17:55 EDTCOCOCorinthian Colleges says need to obtain additional sources of liquidity
In a regulatory filing, Corinthian Colleges disclosed that the company has entered into a Consent and Amendment No. 4 to Credit Agreement, dated as of August 19, by and among the company, Everest Colleges Canada, the Guarantors party thereto, the Lenders party thereto and Bank of America, as Domestic Administrative Agent and Canadian Agent...As previously reported by the company, the company has been, and is, seeking additional sources of liquidity through, among other things, asset sales. On August 20, the company sold to an unrelated third party, on a non-recourse basis, after conducting a bid process, a portfolio of student loans for approximately $19M. The company’s decision to sell certain of its student loans which it had previously intended to hold for investment resulted in a change in the accounting treatment for such loans from “held for investment” to “held for sale.” the company concluded on August 19 that an impairment charge is required of approximately $55M to $59M. The company expects to include the impairment charge in its consolidated financial statements for the fiscal year ended June 30...Additionally, the CFPB requested certain documents relating to a recently-completed sale of student notes and certain information relating to the student loans that the company continues to hold and any private lending arrangements to which the company is currently a party...The company added that Corinthian Colleges continues to need to obtain additional sources of liquidity to fund its operations and to implement the agreements contemplated by the Operating Agreement. To do so, the company will continue to seek additional sources of liquidity through new financings, additional cost reductions, accelerated asset sales or some combination thereof. There can be no assurance that the company will be able to obtain any such additional needed liquidity on a timely basis, on terms acceptable to it, or at all. Any withholding of Title IV funds by ED, or further restrictions on funding or operations by accrediting agencies, state agencies, or other funding sources would exacerbate the company’s existing liquidity constraints.
08:52 EDTESIITT Educational volatility elevated into Q2 and outlook
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07:23 EDTLOPE, ESI, DV, APEI, COCO, CECO, BPI, APOL, STRAGovernment not looking to push other colleges out of business, says Wells Fargo
In the wake of Corinthian Colleges' (COCO) dissolution due to actions taken by the Department of Education, Wells Fargo thinks the government did not intend for this scenario to unfold. After speaking with unnamed "knowledgeable sources" about the issue, the firm does not expect the department to take similar actions in the future because doing so would create too much of a workload for the department, Wells believes. Publicly traded companies in the space include American Public Education (APEI), Apollo Education (APOL), Bridgepoint Education (BPI), Career Education (CECO), Corinthian Colleges (COCO), DeVry (DV), Grand Canyon (LOPE), ITT Educational (ESI) and Strayer (STRA).
August 19, 2014
15:12 EDTAPOLApollo Education management to meet with Piper Jaffray
Meeting to be held in Los Angeles on August 21 hosted by Piper Jaffray.

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