Career Education shares flunking after quarterly report

Perdoceo Education

02/08/2018 15:55

** Shares of Career Education Corp  CECO.O  fall to lowest
level since Jun 4 on Thursday after co's Q2 report/outlook.
Student enrollments fall 2.8 pct vs year-ago qtr
    ** CECO last down 10.3 pct at $16.75 after falling as low as
$15.50 earlier in session. On track for biggest one-day pct drop
since Feb 2017
    ** Private university co reports EPS of $0.12 on revenue of
$142.04 mln  urn:newsml:reuters.com:*:nBw4Z540za. Only two analysts cover CECO according
to Thomson Reuters data which has average estimate of $0.20 EPS,
rev of $141.15 mln 
    ** While total enrollment fell CECO says it will grow in Q3 
                                           driven by academic
calendar redesign
    ** Piper Jaffray analyst Peter Appert says sees progress in
CECO turnaround effort, describes it as "intriguing story for
risk tolerant, small-cap value investors" citing healthy balance
sheet, operating leverage if it can sustain positive University
enrollments
    ** But Appert said: "meaningful execution risk and
enrollment volatility keep us at Neutral for now"
    ** Even with today's drop, CECO still up close to 40 pct YTD

 ((sinead.carew@thomsonreuters.com; +1 (646) 223 6186; Reuters
Messaging: sinead.carew.thomsonreuters.com@reuters.net))