PHOENIX (AP) -- Grand Canyon Education Inc., the for-profit education company that runs Grand Canyon University, said Monday its second-quarter net income rose 21 percent, helped by higher enrollment.
The company raised its guidance for the year and its shares jumped 15 percent in aftermarket trading.
Net income rose to $15.6 million, or 35 cents per share, from $12.9 million, or 29 cents per share last year, during the April to June quarter.
Enrollment rose 12.4 percent to 44,400 from 39,500 during the quarter.
The company also said it reviewed student files between 2008 and 2010 and found that about $3 million in Pell grants received by the University for students that later unofficially withdrew, mainly during the 2008 and 2009 year, should have been returned. Students are obligated to repay the university for the amounts but Grand Canyon said it won't seek reimbursement. It estimates the returns are worth about $3 million so it put aside that amount in a reserve. Excluding that, net income would have been 39 cents per share.
Analysts expected adjusted earnings of 27 cents per share, according to FactSet.
Revenue rose 16 percent to $119.3 million from $103.1 million last year. Analysts expected revenue of $115.1 million.
The company also gave detailed guidance for the next two quarters and fiscal year.
Grand Canyon expects third-quarter net income of 33 cents to 35 cents per share on revenue of $124.5 million and $126.5 million. Analysts expect net income of 31 cents per share on revenue of $122 million.
It expects fourth quarter net income of 36 cents and 39 cents per share on revenue of $127 million to $130 million. Analysts expect net income of 38 cents per share on revenue of $129.1 million.
That tallies up to net income for the full year of $1.36 to $1.41 per share on revenue of $488 million to $493 million. That's up from prior guidance of $1.24 to $1.30 per share on revenue of $478 million to $486 million. Analysts expect net income of $1.28 per share on revenue of $483.3 million.
Shares rose $2.40 to $18.55 in aftermarket trading. The stock closed up 20 cents at $16.15 on Monday.