Capella Education Co. on Thursday reported stronger-than-expected fourth-quarter results and gave an upbeat outlook for 2015.
The Minneapolis-based online education firm said it earned $12.3 million in the last three months of 2014, up 23 percent from a year earlier. That profit amounted to 99 cents a share, well above the 92 cents expected by investment analysts. Revenue rose 2.3 percent to $108.4 million.
Capella shares closed up 7 cents to $66.60 Thursday after rising as much as 9 percent in morning trading.
Kevin Gilligan, Capella's chairman and chief executive, said the firm is "entering 2015 with momentum and a great opportunity to begin a new period of sustained growth."
The firm said it expects new enrollment to grow 13 to 15 percent during the first three months of the year, with total enrollment rising 4 to 5 percent and overall revenue growing 3 to 4 percent. Executives said they expect to operating margin to improve as a result.
The outlook contrasts with the difficult start to 2014 at Capella. A year ago, company executives told investors to expect a dip in first-quarter total enrollment of 1.5 to 2.5 percent. Enrollment wound up below that range, at 1.4 percent lower, in the period, marking the start of a turnaround. Enrollment was marginally lower in the second quarter and then rose solidly in the second half of the year.
In the just-completed fourth quarter, total enrollment was up 2.5 percent and new enrollment was up 8.8 percent.
Evan Ramstad
