Career Education Corp.

Career Education Corp. (CECO - Snapshot Report) has rebounded from its short-term low after selling off with the market last year. The company's recent earnings were strong and analysts are bullish.

Company Description

Career Education Corp. is a private education institution offering certification in various professional and technical skills. The company was founded in 1994 and has a market cap of $2.10 billion.

Private Education Stays Hot

Private education stocks took a hit with the overall market in the last 6 months as weak fundamentals drove prices lower. But these stocks have recently stabilized, and earnings estimates have turned higher as demand remains strong. Career Ed. Corp.s fourth quarter results, reported on Feb 20, demonstrate this dynamic.

Fourth-Quarter Results

Revenue was down slightly, just over 5% to $431.8 million. But earnings surged, jumping to $31.2 million from $8.8 million, producing earnings of 43 cents per share, more than doubling the consensus of 21 cents.

Career Corp said its student enrollment stood at 98,000 at the end of 2008, about even with the same time last year.

Estimates Rise

Analysts are optimistic on the company's earnings. The current-year estimate is up 7 cents in the last 30 days to $1.01. The next-year stands at $1.56, a bullish 55% earnings growth projection.

The Chart

Shares of CECO have been rallying for the last four months after bottoming out in November. The stock has stabilized after selling off last year on strong earnings and growth projections. Take a look.

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