The board of directors of
Capella Education Company
), a provider of online post-secondary education, initiated a
quarterly cash dividend of 35 cents per outstanding share of
common stock. The quarterly dividend is payable on Jan 10, 2014
to shareholders of record as of Dec 23, 2013.
Back in Aug 2013, the board of directors of Capella raised its
share repurchase authorization by $50 million. The company has
$53 million remaining under the existing program as of Sep 30,
The initiation of quarterly dividend and increase in the share
repurchase authorization program indicates the company's strong
liquidity position. The company had $114.8 million of cash and
cash equivalents as of Sep 30, 2013, higher than $107.6 million
as of Jun 30, 2013. The company has no debt as of Sep 30, 2013.
The company's constant focus on cost management has led to a
stable cash position.
Capella has been performing well since the past three quarters.
Capella beat both the top and bottom line in the third quarter of
2013. The solid third quarter 2013 results were driven by higher
operating margin, lower debt expenses and disciplined cost
management. Revenues also surpassed management's expectations
backed by tuition increase.
However, Capella has been witnessing declining enrollment trends
for the past few quarters due to volatility in the educational
sector. The ongoing downward trend in enrollment has prompted
Capella management to provide a cautious outlook for the
fourth-quarter of 2013 as it believes that conditions are not
going to improve until 2014. The company expects both new and
total enrollments to decline in a mid-to-high single-digit
percentage range in the fourth quarter.
Capella carries a Zacks Rank #3 (Hold). Better-ranked stocks in
the education sector include
ITT Educational Services Inc.
New Oriental Education & Technology Group
Xueda Education Group
). While ITT Educational and New Oriental carry a Zacks Rank #1
(Strong Buy), Xueda holds a Zacks Rank #2 (Buy).
CAPELLA EDUCATN (CPLA): Free Stock Analysis
NEW ORIENTAL ED (EDU): Free Stock Analysis
ITT EDUCATIONAL (ESI): Free Stock Analysis
XUEDA EDUC-ADR (XUE): Free Stock Analysis
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