Capella Education Co. shares rose 12 percent Tuesday after the company's third-quarter results beat expectations and executives said they expect it will finish the year more strongly than previously forecast.
Minneapolis-based Capella said it earned $12.6 million in the July-to-September period, up from $8.2 million a year ago. Adjusted to account for continuing operations, the company earned 81 cents a diluted share, well above the 62 cents a share that was the consensus forecast of analysts.
Revenue was $105.9 million, up from $100.1 million a year ago.
Active enrollment at Capella University, the company's online education service, rose 2.8 percent to 37,708 learners. New enrollment fell 0.9 percent compared to a year ago.
The company forecast revenue from continuing operations would grow 3.5 percent to 4.5 percent in the fourth quarter. For the full year, executives said they expect profit including one-time costs and accounting changes to be in a range of $3.50 to $3.55 a share, up from the previous forecast of $3.30 to $3.40 a share.
Capella shares rose $7.32 to $67.78.
