Earnings Preview: Corinthian Colleges Reports Q2 Results Tuesday

Aug.18.11 | About: Corinthian Colleges, (COCO)

Corinthian Colleges, Inc. (NASDAQ:COCO) is due to report earnings before the opening bell on Tuesday, August 23. COCO trades an average of 1.71 million shares per day and has a market cap of $251.30 million. Corinthian Colleges, Inc. operates as a post-secondary career education company in the United States and Canada. The company was founded in 1995 and is based in Santa Ana, California.

Recent price: $2.83
52-week high: $7.35
52-week low: $2.80
Book value: $6.63

On average, analysts are expecting $0.15 per share, a drop of $0.06 in earnings per share compared to last quarter's results of $0.21. The forward P/E ratio is 18.87. Looking at the price movement over the last month, the stock has fallen in price 35.15 % , in the last quarter, it has returned -21.95%, with a one year change of -43.10%.

Comparing to the S&P 500 price changes, the price performances are -27.86% vs. the S&P 500 from a month ago, -34.00% vs. the S&P 500 from six months ago, and the year to date difference is -39.89% vs. the S&P 500 price change.

What a total unmitigated horror show for investors, especially as we go into the earnings for the last quarter. I have been bullish with this stock for about a year now, and only in the last month have I not had a long position on it. Not being long has as much to do with distractions taking my attention away to other companies. After the puts expired worthless that I was short last month, I haven't found the time to position myself long again (via shorting puts). Every time I had a chance to look, the options were not priced enough for the risk, so I put it off until the next day's opening and stayed busy.

I still am bullish, as I believe if the space doesn't improve, COCO will get bought out. Over 25% of the float is short. If it does beat and guides higher, we could see an epic short squeeze. I am not betting on that, only pointing out it is possible.

Revenue year-over-year has increased to $1.76 billion for 2010 vs. $1.31 billion for 2009. The bottom line has rising earnings year-over-year of $145.97 million for 2010 vs. $68.76 million for 2009. The company's earnings before income and taxes are rising with an EBIT year-over-year of $240.75 million for 2010 vs. $119.27 million for 2009. Annually, revenue is growing at a rate of 34.35%.
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Gross reported revenue compared to the mean estimate (rounded).

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Mar-11 $ 467.22 M $ 462.35 M $ -4.87 M -1.04%
Dec-10 $ 476.63 M $ 482.79 M $ 6.16 M 1.29%
Sep-10 $ 494.25 M $ 501.74 M $ 7.49 M 1.52%
Jun-10 $ 477.01 M $ 482.74 M $ 5.73 M 1.2%
Mar-10 $ 472.52 M $ 478.27 M $ 5.75 M 1.22%
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M = millions, B = billions

Reported earnings per share compared to the mean estimate. Differences are rounded.

Fiscal Quarter Ending Month-Year Estimate Actual Difference Difference %
Mar-11 0.21 0.21 0 0.00%
Dec-10 0.22 0.23 0.01 4.55%
Sep-10 0.39 0.38 -0.01 -2.56%
Jun-10 0.39 0.38 -0.01 -2.56%
Mar-10 0.46 0.45 -0.01 -2.17%
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(Some onetime items are often excluded in reported EPS.)
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I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, Google Finance, MSN Money, CNBC, Zacks and Yahoo Finance for most of my data. I use the "confirmed" symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in COCO over the next 72 hours.