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Will Capella Sales Benefit from Non-Degree Programs in 2016?
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On Aug 22, 2016, we issued an updated research report on Capella Education Company .
On Apr 26, this Minneapolis-based education company reported solid results for the second quarter of 2016.
Capella’s second quarter earnings of 93 cents per share surpassed the Zacks Consensus Estimate by 5.68% and rose 3.3% year over year, owing to strong revenues. Revenues of $106.7 million also beat the Zacks Consensus Estimate by 0.7% and inched up 2% year over year, owing to an improvement in enrollment levels.
The total enrollment increase which was at the higher end of the company’s expectation was driven by strong enrollment trends in master's programs, partially offset by total enrollment decline in doctoral and bachelor's programs. Total active enrollment of Post-Secondary segment increased in the quarter owing to improved early-cohort persistence.
Capella Education reported impressive results in the first two quarters of 2016 with revenues, enrollment levels and earnings per share showing significant improvement. Total enrollment growth in the first two quarters of the year was driven by higher enrollment in FlexPath programs, improved early-cohort persistence and higher percentage of returning learners.
Moreover, the company’s focus on non-degree programs is encouraging and should drive the top line in the long term. Capella expects the Hackbright Academy (Apr 22, 2016) and DevMountain (May 4, 2016) acquisitions to contribute to revenues in the near term.
However, unfavorable degree mix shift and change in accounting for revenue recognition are hurting revenues. Unfavorable shift in the student mix from PhD to the masters’ degree program is hurting revenue per student.
Capella Education carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the education space include Lincoln Educational Services Corporation (LINC - Free Report) , Apollo Education Group, Inc. and ITT Educational Services Inc. (ESI - Free Report) . While Lincoln Educational and ITT Educational sport a Zacks Rank #1 (Strong Buy), Apollo Education holds a Zacks Rank #2 (Buy).
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Will Capella Sales Benefit from Non-Degree Programs in 2016?
On Aug 22, 2016, we issued an updated research report on Capella Education Company .
On Apr 26, this Minneapolis-based education company reported solid results for the second quarter of 2016.
Capella’s second quarter earnings of 93 cents per share surpassed the Zacks Consensus Estimate by 5.68% and rose 3.3% year over year, owing to strong revenues. Revenues of $106.7 million also beat the Zacks Consensus Estimate by 0.7% and inched up 2% year over year, owing to an improvement in enrollment levels.
CAPELLA EDUCATN Price and EPS Surprise
CAPELLA EDUCATN Price and EPS Surprise | CAPELLA EDUCATN Quote
The total enrollment increase which was at the higher end of the company’s expectation was driven by strong enrollment trends in master's programs, partially offset by total enrollment decline in doctoral and bachelor's programs. Total active enrollment of Post-Secondary segment increased in the quarter owing to improved early-cohort persistence.
Capella Education reported impressive results in the first two quarters of 2016 with revenues, enrollment levels and earnings per share showing significant improvement. Total enrollment growth in the first two quarters of the year was driven by higher enrollment in FlexPath programs, improved early-cohort persistence and higher percentage of returning learners.
Moreover, the company’s focus on non-degree programs is encouraging and should drive the top line in the long term. Capella expects the Hackbright Academy (Apr 22, 2016) and DevMountain (May 4, 2016) acquisitions to contribute to revenues in the near term.
However, unfavorable degree mix shift and change in accounting for revenue recognition are hurting revenues. Unfavorable shift in the student mix from PhD to the masters’ degree program is hurting revenue per student.
Capella Education carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the education space include Lincoln Educational Services Corporation (LINC - Free Report) , Apollo Education Group, Inc. and ITT Educational Services Inc. (ESI - Free Report) . While Lincoln Educational and ITT Educational sport a Zacks Rank #1 (Strong Buy), Apollo Education holds a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>