Online education firm reports flat sales for quarter
Capella Education Co. said first-quarter earnings declined in a "challenging market environment."
The Minneapolis-based for-profit online education company said earnings for the quarter ended March 31 decreased to $11.3 million, or 82 cents a share, from $14.6 million, or 90 cents a share, the same period a year ago.
Wall Street analysts were expecting Capella to earn 78 cents a share.
Sales in the quarter decreased 1.8 percent to $109 million.
Capella Chairman and CEO Kevin Gilligan said in a statement the company's focus "remains on building Capella for long-term sustainable growth" through a new marketing strategy and investments in innovation to "drive differentiation and learner success."
Capella also updated its revenue outlook for the second quarter, saying it will decline 1 percent to 2 percent. Total enrollment is also expected to decline by 6 percent to 7 percent when compared with the same period of 2011.
Capella has struggled due to a weakened economy, increased competition and new federal regulations related to high student loan debt.
Janet Moore 612-673-7752