CECO is up sharply and I'm guessing the earnings release by APOL last night has something to do with it. They beat the consensus....which is nice. However, when you look at the details you'll find:
* revenues down again
* new starts still negative (down 22%)
* total enrollments down again (down 18%)
* EBITDA $ down; margin % up
So, why was the bottom-line so good? They are doing a great job of cutting costs. One report says they've cut costs $650 million vs. the FY12 base level. However, the big reason in my opinion for the price jump at APOL is an adjustment in the valuation metrics. Recently, they were trading for 1.8x EV/EBITDA while their peer average was 5.2. It appears the market looked at their latest report and decided not to continue to undervalue them so much vs. the field.
If this is why CECO is up, I'm not sure the gains at CECO will be maintained. If APOL was up due to increased enrollments, then it would be a reasonable assumption to say things were turning for the industry as a whole....but that's not what happened. I'm looking forward to CECO's quarterly announcement to see how their enrollment trends are doing ....and...how they've done on the cost reduction side of the business.