The board of directors of
Capella Education Company
) recently raised its share repurchase authorization by $50
million. This increase is in addition to the $6 million remaining
under the existing program as of Jun 30, 2013.
The increase in the share repurchase authorization program
indicates the company's strong liquidity position. The company
had $107.6 million of cash and cash equivalents as of June 30,
On Jul 23, Capella reported second quarter 2013 results. Its
second quarter 2013 earnings of 83 cents a share surpassed the
Zacks Consensus Estimate of 66 cents by 25.8% on the back of
better-than-expected new enrollment and total enrollment in the
However, earnings declined 2.4% from the year-ago quarter due to
year-over-year decreases in revenues and margins.
Better-than-anticipated new enrollment and total enrollment,
however, could not offset the year-over-year downward drift in
Like another education company
Apollo Group Inc.
), Capella has been witnessing volatile enrollment growth since
the last few quarters. For the third quarter of 2013, Capella
expects new enrollments to decline in a mid- to single-digit
percentage range. Total enrollment is expected to dip 2% to 4% in
the third quarter.
Revenues are expected to be flat to up 1% in the third quarter of
2013. Operating margin is expected to be in the range of 8% to 9%
for the third quarter.
Capella carries a Zacks Rank #1 (Strong Buy).
Other education companies that are performing well are
Grand Canyon Education, Inc.
TAL Education Group
). Both these companies carry a Zacks Rank #2 (Buy).
APOLLO GROUP (APOL): Free Stock Analysis
CAPELLA EDUCATN (CPLA): Free Stock Analysis
GRAND CANYON ED (LOPE): Free Stock Analysis
TAL EDUCATN-ADR (XRS): Free Stock Analysis
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