Career Education Corp (CECO) is expected to report Q2 earnings after market close Wednesday, August 6, with a conference call scheduled for Thursday at 10:00 a.m. ET.
Analysts are looking for a profit of 6c on revenue of $423.16M. The consensus range is (1c) to 13c for EPS, and revenue of $404.6M to $436.4M, according to First Call. The company recently announced the sale of the Toronto campus of the International Academy of Design and Technology or IADT to RCC Institute of Technology, a division of Yorkville University. Financial details of the transaction were not revealed.
The company expects to record a non-cash loss of about $3M related to the sale. Career Education said that Todd Steele has resigned from his position as Senior Vice President, International, Business Development & Planning. Steele was a co-founder of the company and served on its board of directors from 1994 through 1998.
Lehman Brothers called the U.S. Educational Services sector defensive performers in a challenging economy. The firm, which raised its rating to Positive from Neutral, said the sector represents defensive characteristics, and explained that when people's employment prospects weaken, they consider training to make themselves more employable. Additionally, the sector should benefit from drivers like lower risks related to student financing and credit issues that have moderated in recent months.