Santa Ana-based vocational school operator Corinthian Colleges Inc. reported March quarter revenue and profit before charges that surpassed Wall Street’s expectations.
But the company warned that results for the 12 months through June could come in at the low end of its own forecast as enrollment slows because of fewer student loans amid the credit crunch.
For the March quarter, Corinthian saw income from continuing operations of $13.5 million, up 12% from a year earlier.
Including losses, Corinthian’s net income was down 2% to $11.8 million.
Revenue rose 17% to $281.5 million.
The number of new students at Corinthian’s schools rose 13% to 26,546.
But the company said it expects enrollment growth to slow to about 6% in the current quarter as students find it difficult to get loans.
For the 12 months through June, Corinthian said it expects earnings to come in at the low end of its forecast of $34 million to $38.5 million.
Investors looked past the cautious outlook, sending Corinthian’s shares up 11% Wednesday on a market value of $965 million.
Corinthian, which runs more than 100 schools in the U.S. and Canada, offers degrees and certificates in healthcare, automotive, criminal justice, technology and other areas.
