Domestic, For-Profit, Investors, Required - Written by on Tuesday, August 2, 2011 23:46 - 0 Comments

Bridgepoint Shares Hammered Down 13% in Trading: Here’s Why

photo: JEFF SCIORTINO for Inc.

by Elbert Chu

 

Bridgepoint Education Inc.  (NYSE:BPI), dropped 13.06% in intraday trading  (-3.27) to close at $21.77. Although the San Diego, Calif. education services company soundly beat Q2 earnings estimates with a 48% rise, this was not enough to distract investors from disappointing guidance.

According to Gurufocus.com and Insider-Monitor.com, among Bridgepoint CEO Andrew Clark has been in on the selling as well. Clark has sold nearly 570,000 shares worth around $12.8 M since the beginning of 2011.

You’ll recall that barely over a week ago, Bridgepoint was down 13% on Warburg Pincus’ shelf filing.

Motley Fool reports:

Now what: The company revised 2011 guidance to EPS of $2.56 to $2.68 and revenue of $886 million to $902 million. While the consensus estimate of $2.57 is toward the low end of the range, the $0.22 EPS beat in the second quarter indicates that estimates for the second half of the year are too high. The revenue guidance was also disappointing compared with the consensus forecast of $904 million. Management expects student enrollment for the year of 79,500 to 83,500, a decline from 84,545 at the end of the second quarter. The earnings press release did not offer an explanation for the anticipated second-half slowdown.

Still, when you look over the for-profit landscape, Bridgepoint is a rare point of light in terms of new student enrollment. Most of the other companies have announced as much as three consecutive quarters of 20% declines in new enrollments, like Strayer last week and 30% over at Capella.

WSJ reports:

Bridgepoint’s new enrollments rose just 3.3% to 19,050 in the latest quarter, far below the double-digit pace in past years. Still, total enrollment as of June 30 was up 25% at 84,545 from 67,744 a year earlier.

Bridgepoint, the parent of Ashford University and University of the Rockies, cut the low end of its prior view for total student enrollment for the year by 2,500, and now expects 79,500 to 83,500.

 

Full article at Motleyfool.

Full numbers at WSJ.

Andrew Clark stock sales: Gurufocus and Insider-monitor.

 

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