Stock of troubled Bridgepoint Education leapt 34.19 percent yesterday (March 9) to $9.09 after the earnings report issued the day before. However, 2015 earnings and revenue dropped sharply compared with 2014. Analysts say the results beat some Wall Street expectations.
The for-profit university lost $70.4 million ($1.54 a share) last year. In 2014, the company had positive earnings of 21 cents a share. Last year's revenue of $561.7 million dropped $77 million (12.1 percent) from 2014. In the fourth quarter, revenue dropped from $147.3 million in 2014 to $131.4 million last year. Net loss widened last year to $6.7 million from $5.2 million.
School enrollment declined 12 percent last year, but the rate of decline diminished sharply from quarter to quarter. The fourth quarter was down just 1.6 percent compared with the third quarter. The company decreased spending by 15 percent last year from 2014's level.