PHOENIX (AP) — Grand Canyon Education Inc. shares soared in after-hours trading Thursday after the for-profit education company far surpassed market expectations for its third quarter on improved enrollment. It also issued a fourth-quarter and full-year forecast that beat estimates.
The company, based in Phoenix, provides online and campus-based undergraduate and graduate degrees.
Net income increased nearly 44 percent to $18.5 million, or 41 cents per share, for the period that ended Sept. 30. That is up from $12.9 million, 29 cents per share, in the same quarter last year. Revenue increased 23 percent to $133.6 million helped by a 17 percent increase in enrollment.
Analysts polled by FactSet expected 35 cents per share on revenue of $125.7 million.
Grand Canyon expects to earn 41 or 42 cents per share in its fourth quarter on revenue of $135 million to $136 million. Analysts expect 38 cents per share on revenue of $129.5 million. It forecast earnings of $1.49 or $1.50 per share for the year on revenue of $505 million to $506 million. Analysts estimate $1.41 per share on revenue of $491.7 million.
Shares of the company fell 15 cents to close at $21.61.