COCO Corinthian Colleges lowers guidance (18.72 )
COCO anticipates Q4 (June) EPS of $0.19-$0.20, vs consensus of $0.28, sees Q1 EPS of $0.17-$0.19, vs consensus of $0.28, and says that it does not expect to achieve its previously targeted EPS for FY05. The co also stated that for future periods, it expects to provide guidance only for the next fiscal qtr. Co attributes its lowered guidance to changes in lead flow mix among television leads, direct mail leads, newspaper leads and Internet leads; higher than anticipated attrition; negative publicity related to student litigation in Florida; and later than anticipated new branch campus openings. Additionally, the co said that it voluntarily met with personnel from the California Attorney General's office on July 21 and provided them with information they had requested regarding three previously settled lawsuits.
Merrill Lynch and JP Morgan
give it downgrade