K12 1st-qtr earnings increase as enrollments grow

HERNDON, Va. (AP) — Educational services provider K12 Inc. said Friday its first quarter profit rose almost 20 percent as enrollments grew. It forecast revenue for the full year that was above its previous guidance.

The Herndon, Va., company, which provides online curriculum and education services for students, said it earned $7.1 million, or 24 cents per share, in the three months ended Sept. 30, compared with $5.9 million, or 20 cents per share, in the same period last year.

Analysts polled by Thomson Reuters had expected profit of 23 cents per share.

Sales rose 20 percent to $106.3 million from $88.6 million a year ago.

Average enrollments grew 23.7 percent to 69,542, slower than the 42.4 percent increase in students in the year-ago quarter. Budget cuts at public schools have hurt K12's enrollments.

Shares jumped $1.20, or 7.6 percent, to $17 in morning trading.

For the year, K12 said it expected sales between $380 million and $390 million, with net income in a range between $14.6 million and $17.1 million.

The revenue range is a bit higher than its September guidance of 20 percent revenue growth for the year, which implied sales of $378.7 million.

Analysts expect earnings of $17.1 million for fiscal 2010 on revenue of $378.7 million.