NEWS: Capella Education Co. said Tuesday its net income jumped 17 percent in the third quarter as the for-profit education company's expenses declined and revenue edged higher. The results trumped Wall Street expectations, but the company forecast weaker new enrollment growth for the fourth quarter.
DETAILS: Total enrollment at Capella University fell 1.4 percent to 34,503 during the quarter, while new enrollment slipped 1.3 percent from a year earlier. The company's expenses declined to $90.2 million from $91 million. And revenue grew 1.4 percent.
NUMBERS: Net income rose to $6 million, or 48 cents per share, for the three months ended Sept. 30. That's up from $5.1 million, or 39 cents per share, a year earlier. Revenue increased to $100.7 million from $99.3 million. Analysts polled by FactSet expected earnings of 40 cents per share on revenue of $99.9 million for the quarter.
FUTURE: Capella said it expects fourth-quarter new enrollment growth at Capella University to fall in the mid-single digit percentage range versus a year earlier. As a result, the company anticipates revenue will be down between 0.5 percent and 1.5 percent.
STOCK: Shares of the Minneapolis company fell $2.95, or 5.1 percent, to $54.63 in afternoon trading. The stock is up 94 percent this year.