HERNDON, Va. (AP) -- Online education company K12 Inc. said Thursday that its fiscal first-quarter and full-year revenue may fall short of market expectations because of poor enrollment.
The company, based in Herndon, Va., provides online education to help struggling students, families that homeschool or other students needing online services.
K12 had warned Tuesday that first-quarter enrollment was weaker than it anticipated, increasing 5.7 percent to 128,550. That fell short of the company's own projections. The company said demand was strong but actual enrollment suffered due to performance issues at enrollment centers and delays in open enrollment periods for some schools.
K12 also said that it anticipated revenue of $905 million to $925 million for its full fiscal year, which ends June 30. Analysts were expecting revenue of $936.2 million, according to a poll by FactSet.
On Thursday, K12 expanded its guidance, saying that it expects its fiscal first-quarter revenue to increase 3 to 4 percent from last year. Based on its revenue of $221.1 million in the same period a year earlier, the company's forecast calculates to a range between $227.7 million and $229.9 million. Analysts were anticipating $244.6 million.
K12's executive chairman of the board, Nate Davis, said that while the company is disappointed with its enrollment numbers, its application volume was strong and demand appears high.
Shares of K12 rose 4 percent to close regular trading at $18.37, then slipped 9 cents in late trading to $18.28. The stock has lost 39 percent of its value so far this week and is down 10 percent for the year to date.
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