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UPDATE 1-Capella Education Q3 tops Street

Tue Oct 27, 2009 7:54am EDT

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* Q3 EPS $0.57 vs est $0.51

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* Q3 Enrollments up 28 pct

* Sees Q4 revenue up 22.5-23.5 pct

* Sees Q4 enrollments up 25.5-26.5 pct

Oct 27 (Reuters) - Capella Education Co (CPLA.O) posted better-than-expected third-quarter results as enrollments jumped 28 percent, and forecast revenue above market estimates for the current quarter.

For the third quarter, Capella's net income was $9.8 million, or 57 cents a share, compared with $5.8 million, or 34 cents a share, a year ago.

Revenue rose 28 percent to $83.6 million.

Analysts were expecting earnings of 51 cents a share on revenue of $81.2 million, according to Thomson Reuters I/B/E/S.

Capella expects fourth-quarter revenue to grow by 22.5 percent to 23.5 percent, while analysts were expecting a revenue growth of 21.9 percent.

It expects student enrollments to increase by 25.5 percent to 26.5 percent in the current quarter.

"Revenue growth is expected to be less than total enrollment growth, primarily due to the revenue impact of fewer scheduled colloquia in the fourth quarter as compared to the prior year," Chief Financial Officer Lois Martin said in a statement.

Shares of the company closed at $70.08 Monday on Nasdaq. (Reporting by A.Ananthalakshmi in Bangalore; Editing by Himani Sarkar)

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