Career Education (NASDAQ: CECO) reported Q1 EPS of $0.07, $0.03 better than the analyst estimate of $0.04. Revenue for the quarter came in at $162.1 million versus the consensus estimate of $161.4 million.

OUTLOOK

The Company has provided an update to its previous outlook, which includes more specific expectations regarding second quarter and full year 2017 performance. These changes are a result of improved stability in our University Group operating performance combined with some variability in 2017 quarterly performance largely due to timing-related items.

The Company currently expects the following results, subject to the key assumptions identified below (see the GAAP to non-GAAP reconciliation for adjusted operating income (loss) attached to this press release for further details):

• University Group and Corporate adjusted operating income in the range of $100 to $105 million for the full year 2017, compared to $89 million in 2016.
• University Group and Corporate adjusted operating income in the range of approximately of $20 to $22 million for the second quarter of 2017, compared to $34 million in the second quarter of 2016, primarily driven by:
  • Impact of the academic calendar redesign at AIU which will shift earnings days into the second half of 2017
  • Investments in the University Group’s admissions and advising centers in Phoenix, Arizona
  • Timing of certain second quarter operating expenses as compared to second quarter of 2016
• Adjusted operating loss for our Transitional Group and Culinary Arts, to be in the range of approximately $50 million to $60 million in 2017, as compared to adjusted operating loss of $30 million in 2016, and to be in the range of $10 million to $20 million in 2018 as we wind-down the remainder of our teach-out campuses.
• End of year cash, cash equivalents, restricted cash and available-for-sale short-term investments, net of any borrowings, as reported on the consolidated balance sheets of approximately $150 million to $160 million for the year ending December 31, 2017, and expected to increase in 2018.

For earnings history and earnings-related data on Career Education (CECO) click here.