Capella Education estimates lowered at Barrington Barrington believes that Capella's Q1 guidance was soft, as total enrollment projections, revenue, and implied EPS guidance all fell below the consensus estimates. The firm finds the stock's valuation attractive but maintains a Market Perform rating.
Capella Education sees Q3 revenue up 1.0%-2.0% YoY Capella University new enrollment growth is expected to be flat to slightly down year-over-year. Total enrollment is expected to grow about 3.0%-4.0% year-over-year. The consolidated operating margin is anticipated to be approximately 12.5%-13.5% of total revenue for the Q3. “Our third quarter 2015 outlook reflects the variability in the current market environment,” said the company. “We will continue to balance short- and long-term investments to support our learners and drive shareholder value.”