Corinthian Colleges Earnings Send Shares Up

Corinthian Colleges Inc.’s stock surged Friday after the Santa Ana operator of for-profit career colleges said it had better-than-expected third-quarter earnings and its enrollment increased. The stock rose 28%, or $3.63 a share, to $16.38 in trading of 514,200 shares, more than four times the three-month daily average. Earlier in the session, the shares touched $19.75. Corinthian Colleges raised $48.6 million in February with an initial public offering at $18 a share. The stock price had fallen 29% before the Friday gain. “When you get your feet knocked out from under you, there’s only one way to go but up,” said Randall Roth, an analyst with Renaissance Capital Corp. Corinthian Colleges said earnings before a charge quadrupled to $2.4 million, or 25 cents a share in the quarter ended March 31. The company had been expected to report earnings of 14 cents a share, according to analysts surveyed by First Call Corp. Revenue rose 26% to $34.9 million from $27.8 million. Corinthian Colleges, which focuses on business-administration and health-care programs, said its student population rose to 16,467 in the quarter, up 14.4% from the year-earlier quarter.