Continuing Education, Domestic, For-Profit, Investors, Required - Written by on Thursday, August 4, 2011 0:36 - 0 Comments

Lincoln Educational Services Tanks 23%: What You Should Know

photo: Andrew Mills/The Star-Ledger

by Elbert Chu

 

Lincoln Educational Services Corp. (NASDAQ: LINC), opened sharply lower this morning and closed down 23.06% (-4.02) to close at $13.26. Lincoln beat Q2 earnings estimates but guided Q3 estimates sharply down.

Lincoln joins the line of for-profit education companies (see Capella & Strayer) this earnings season who are reporting downright depressing new enrollment numbers. In Lincoln’s case, new enrollments decreased 47.8% Q2 as compared to the prior-year quarter. On top of that, average student population is down 20.2% over the same period.

The West Orange, NJ-based company specializes in working adult degree programs, predominantly health science (39% of students) and automotive (32% of students).

The company attributes the poor performance to adjustments for the new “gainful employment” rules:

“During the first half of 2011, we made certain changes to our business model to address a challenging regulatory environment, anticipation of final rules under gainful employment and assumed the end of the existing 90/10 regulatory remedies,” said Shaun McAlmont, Lincoln’s President and Chief Executive Officer.

McAlmont continues:

“As part of these measures we have implemented a more selective student enrollment policy to ensure that we enroll students that demonstrate a strong ability to achieve successful student outcomes, including higher graduation rates, repayment rates and lower student debt levels.

These changes to comply with the 90/10 rule resulted in average revenue per student rising 5.2% from tuition increases ranging from 3-5%.

 

Full article at SeekingAlpha.

Enhanced by Zemanta


Leave a Reply

Comment

Campus Buzz


We welcome Tips & Pitches



What you need to know weekly:
The WiredAcademic newsletter.


* = required field

Latest WA Original Features






  • Twitter feed loading




Paul Glader, Managing Editor
@paulglader

Eleni Glader, Policy Editor

Elbert Chu, Innovation Editor
@elbertchu

Ravi Kumar, Reporter & Social Media Editor
@ravinepal

Derek Reed, Reporter
@derekreed

Brock Buesing, Contributor










APEI22.95  chart+0.20  chart +0.88%
APOL9.995  chart+0.005  chart +0.05%
AAPL153.61  chart-0.26  chart -0.17%
BPI13.94  chart+0.03  chart +0.22%
CAST0.0025  chart+0.0000  chart +0.00%
CECO9.61  chart-0.05  chart -0.52%
COCO0.0139  chart+0.0000  chart +0.00%
CPLA87.90  chart+0.80  chart +0.92%
DV36.90  chart-0.05  chart -0.14%
EDMC0.0094  chart+0.0009  chart +10.59%
ESI0.358  chart+0.000  chart +0.00%
GOOG971.47  chart+1.93  chart +0.20%
LINC3.39  chart+0.23  chart +7.28%
LOPE77.32  chart-0.57  chart -0.73%
PEDH0.13  chart+0.00  chart +0.00%
PSO8.92  chart+0.01  chart +0.11%
SABA8.81  chart+0.00  chart +0.00%
SCHL42.06  chart+0.21  chart +0.50%
STRA88.86  chart+0.76  chart +0.86%
WPON/A  chart+0  chartN/A
2017-05-26 16:00


Cost of Education, Domestic, Education Quality, Ethics, For-Profit, Regulatory, Required, Students, University & College - Mar 11, 2012 21:17 - 0 Comments

Heard: Senators On Warpath Against For-Profit College Military Push

More In For-Profit


Blended Learning, Domestic, Elementary / Primary / Junior, Flipped Classrooms, High school / Secondary 2, International, Open Source Education, Required, School teachers, Startups, Students, Technology - Mar 12, 2012 19:04 - 0 Comments

Big Weekend For Sal Khan; Appears On 60 Minutes & Launches Free iPad App

More In Technology


Domestic, Education Quality, For-Profit, Friend, Fraud, or Fishy, Required, University & College - Feb 10, 2012 16:36 - 0 Comments

Heard: NYC Warns Against For-Profit Adult Education Scams

More In Friend, Fraud, or Fishy