FBR Capital Reiterates an 'Underperform' on Corinthian Colleges (COCO); New Starts Are Hard to Find
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Price: $65.21 --0%
Rating Summary:
10 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
10 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital reiterates an 'Underperform' on Corinthian Colleges (NASDAQ: COCO), PT $4.
FBR analyst says, "Our key takeaway relates to management's F4Q11 guidance, and while EPS expectations are consistent with our model, the new start outlook was weaker than what we were looking for. Whether the pressure is being driven by the suspension of enrollment to Ability to Benefit (ATB) students, the company's 12% average tuition increase, negative industry publicity, or other regulatory uncertainties, in our view, enrollment growth will likely remain challenging as the company attempts to improve student outcomes and maintain compliance with existing regulations. As a result, we continue to see risk to earnings and limited upside potential from current levels."
"We are maintaining our FY11 EPS estimate of $0.93, but due to a weaker new start and revenue outlook we are lowering our FY12 EPS estimate to $0.35, from $0.40."
For more ratings news on Corinthian Colleges click here and for the rating history of Corinthian Colleges click here.
Shares of Corinthian Colleges closed at $4.31 yesterday.
FBR analyst says, "Our key takeaway relates to management's F4Q11 guidance, and while EPS expectations are consistent with our model, the new start outlook was weaker than what we were looking for. Whether the pressure is being driven by the suspension of enrollment to Ability to Benefit (ATB) students, the company's 12% average tuition increase, negative industry publicity, or other regulatory uncertainties, in our view, enrollment growth will likely remain challenging as the company attempts to improve student outcomes and maintain compliance with existing regulations. As a result, we continue to see risk to earnings and limited upside potential from current levels."
"We are maintaining our FY11 EPS estimate of $0.93, but due to a weaker new start and revenue outlook we are lowering our FY12 EPS estimate to $0.35, from $0.40."
For more ratings news on Corinthian Colleges click here and for the rating history of Corinthian Colleges click here.
Shares of Corinthian Colleges closed at $4.31 yesterday.
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