Corinthian, Apollo Group, ITT Educational Plunge

123jump.com Staff
16 Aug, 2010
New York City

U.S. stocks traded sideways and private education providers dropped sharply after the U.S. Department Education raised loan repayment concerns. Capella, ITT Educational Services, Corinthian Colleges and Strayer Education Inc plunged more than 15%.

[R]11:40 AM New York – U.S. stocks traded sideways and private education providers dropped sharply after the U.S. Department Education raised loan repayment concerns. Capella, ITT Educational Services, Corinthian Colleges and Strayer Education Inc plunged more than 15%.[/R]

U.S. stocks traded sideways in the early trading. Of the 30 stocks in the Dow Jones Industrial Average, 15 increased, 14 decreased and 1 was unchanged.

Cisco Systems led the gainers in the Dow with a rise of 2.8% followed by an increase in Intel Corp of 1.7%, in Home Depot Inc of 1.7% and in Hewlett Packard of 1.5%.

Travelers Cos led the decliners in the Dow with a fall of 0.8% followed by losses in Johnson & Johnson of 0.7%, in Verizon Communication of 0.5% and Merck & Co of 0.46%.

Private education and vocational institutions dropped sharply after the U.S. Department Education suggested that loan payments from the graduates are not sufficient and that may lead to tighter scrutiny of loans or outright curb.

Capella Education Co plunged 11.6% to $62.08 and said that it disagrees with the latest data released by the Department of Education that its loan repayment rate is 40% and estimated rate of 45% and said it would continue to ‘qualify for federal student aid participation.’

Apollo Group increased 6.9% to $41.62 after positive comments from Deutsche Bank AG that cited that the company is poised to expand its bachelor’s program.

ITT Educational Services, Inc ((ESI)) dropped 12.6% to $56.22 and Corinthian Colleges, Inc ((COCO)) dropped 22.7% to $5.15.

Other Movers

Bioanalytical Systems, Inc. ((BASI)) soared 12.7% or 12 cent to $1.04 after a pharmaceutical development research services reported second quarter revenue decreased 2% to $6.9 million from $7.1 million in the same quarter last year. The net loss for the second quarter was $1.2 million or 25 cent per diluted share, compared to $1.8 million or 0.37 cent per diluted share, for the year-ago quarter.

Cowen Group, Inc. ((COWN)) declined 3.8% or 10 cent to $3.79 after the investment banking services said second quarter total revenue was $55.0 million from $17.0 million in the year-ago quarter Net loss in the quarter was $21.2 million or 29 cents per diluted share compared to net loss of $17.2 million or 46 cents per diluted share, a year ago.

Green Dot Corporation ((GDOT)) fell 1.4% or 66 cent to $44.35 after the prepaid financial services said Total operating revenues on a GAAP basis increased 44% to $90.3 million for the second quarter from $62.9 million in the second quarter of 2009. Net income was $12.5 million for both the second quarters of 2010 and 2009. Diluted earnings per share increased to $0.29 compared to $0.25 in the prior-year quarter.

The Hallwood Group Incorporated ((HWG)) increased 3.3% or $1.26 to $39.04 after the holding company reported second quarter revenue was $47.9 million compared to $44.3 million a year ago quarter. Net income in the quarter was $4.8 million, or $3.14 per diluted share, compared to net income of $3.6 million, or $2.34 per diluted share, for the same quarter a year ago.

Lowe''s Companies, Inc. ((LOW)) rose 2.3% or 47 cent to $20.06 after the home improvement retailer reported second quarter sales increased 3.7% to $14.4 billion, from $13.8 billion in the second quarter of 2009 on comparable store sales rise of 1.6%. Net earnings in the quarter grew 9.6% to $832 million or 58 cents per diluted share compared to net earnings of $759 million or 51 cents per share in the same period a year ago.

O''Charley''s Inc. ((CHUX)) fell 0.1% or 1 cent to 5.32% after the multi-concept restaurant company reported second quarter revenue decreased 5.9% to $194.1 million from $206.2 million in the same quarter last year. Net loss in the quarter fell 1.4% to $2.5 million or 12 cents per diluted share, compared to net income was $2.5 million or 13 cents per share for the year-ago quarter.

Saga Communications, Inc. ((SGA)) fell 0.9% or 20 cent to $20.35 after the broadcast company reported second quarter net operating revenue rose 4% to $32.9 million compared to $7.8 million a year ago quarter. Net income for the quarter was $3.7 million, or 87 cents per diluted share, compared to net income of $2.7 million, or 63 cents per diluted share, for the same quarter of 2009.

Waytronx, Inc. ((WYNX.OB)) soared 4.4% or 1 cent to $0.24 after the company focused on the commercialization of thermal management solutions reported second quarter revenues surged 77% to $10.72 million. On a sequential basis, revenues grew 40% quarter over quarter. Net earnings in the quarter were $3.49 million or $0.02 per diluted.