Lincoln Educational Services Corporation’s LINC shares fell 4% on Nov 14, following lower-than-expected earnings in third-quarter 2019. However, its revenues marginally outpaced analysts’ expectation. Nevertheless, both the metrics improved year over year owing to 3.3% increase in average student population, which was mainly attributed to the company’s consistent student start growth over the past two years. Delving Deeper During the quarter under review, Lincoln reported adjusted earnings of 5 cents per share, missing the Zacks Consensus Estimate of 9 cents by 44.4%. However, the reported figure increased 150% on a year-over-year basis. Total revenues during the quarter totaled $72.6 million, which topped the consensus mark of $72.34 million by 0.4% and grew 3.6% from the year-ago period. Revenues on a same school basis rose 4.8% from the year-ago period. Lincoln Educational Services Corporation Price, Consensus and EPS Surprise
Average student population and total student starts increased 3.3% and 2.7% year over year, respectively. Same school average student population and starts grew 4.5% and 3.4% from the prior-year period, respectively. The strong results were mainly supported by continued focus on strategic operating plan, targeted marketing, expanding corporate partnerships and engagement with local communities.