August 7, 2012 / 11:46 AM / 5 years ago

UPDATE 1-Bridgepoint suspends forecast on accreditation woes

* Q2 EPS $0.84 beats Street view of $0.74

* Student sign-ups increase 1 pct

* Revenue up 7 pct but misses analyst estimates

Aug 7 (Reuters) - Bridgepoint Education Inc reported a better-than-expected quarterly profit as student sign-ups rose but the company suspended its full-year forecast, citing issues with its accreditation status.

"The company has elected to suspend, until further notice, its practice of providing full-year financial and operating guidance due to reduced visibility arising from recent regulatory developments," Bridgepoint said.

The for-profit education company's Ashford University was last month denied accreditation to the Western Association of Schools and Colleges (WASC), prompting another agency - the Higher Learning Commission - to review its accreditation to the for-profit college.

The WASC had said Ashford University spends more money on recruiting students than on teaching them.

The company's second-quarter net income fell to $47.5 million, or 84 cents per share, from $52.1 million, or 90 cents per share, a year earlier.

Revenue rose 7 percent to $256.3 million.

Analysts on average had expected earnings of 74 cents per share on revenue of $260.6 million, according to Thomson Reuters I/B/E/S.

New student enrollments at Bridgepoint rose 1 percent during the quarter.

Bridgepoint's shares, which have fallen nearly 60 percent since the WASC denied accreditation, closed at $10.01 on Monday on the New York Stock Exchange.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below