Career Education 4Q results top Wall Street's view

February 27, 2014

SCHAUMBURG, Ill. (AP) -- Career Education's fourth-quarter loss narrowed as it trimmed expenses and shares rose to levels not seen in a year early Thursday.

For the period ended Dec. 31, Career Education Corp. lost $30.6 million, or 46 cents per share. That compares with a loss of $61.5 million, or 93 cents per share, a year earlier.

Excluding legal settlements, impairment charges and other items, loss from continuing operations was 29 cents per share.

Revenue fell 19 percent to $247.1 million from $303.3 million.

Shares of Career Education rose 99 cents, or 14.8 percent, to $7.66. The stock touched $7.93 earlier in the session, its highest point since April 2012.

New student enrollments for the Schaumburg, Ill. company declined 16 percent in the quarter.

Total operating expenses fell to $306.1 million from $394.8 million.

For the full-year, Career Education's loss widened to $164.3 million, or $2.46 per share, from a loss of $142.8 million, or $2.15 per share, in the prior year.

The adjusted loss from continuing operations was $1.41 per share.

Annual revenue dropped 21 percent to $1.06 billion from $1.34 billion.

Last month Career Education and another for-profit education company disclosed in regulatory filings that they had received inquiries from 12 states about their business practices. The inquiries focused on recruiting students, graduate placement statistics, graduate certification and licensing, as well as student lending.

For-profit education companies have faced public criticism in recent years over high drop-out rates, post-graduation job prospects and high debt levels taken on by students.