Grand Canyon Education Q3 Results Beat View; May Convert To Nonprofit Entity

(RTTNews) - Grand Canyon Education, Inc. (LOPE) reported that its third-quarter net income was $29.02 million or $0.62 per share, up from $22.55 million or $0.49 per share last year.

On average, 10 analysts polled by Thomson Reuters expected the company to report earnings per share of $0.54 for the quarter. Analysts' estimates typically exclude special items.

Net revenue for the quarter grew 15 percent to $175.1 million from $152.4 million in the year-ago period, while ten analysts expected revenue of $169.40 million for the quarter.

Looking ahead to fourth quarter, the company now expects earnings of $0.66 per share and net revenue of $184.5 million, up from the prior forecast for earnings of $0.63 per share and net revenue of $181.6 million. Analysts expect the company to report earnings per share of $0.64 for the quarter on revenue of $181.93 million.

For full year 2014, the company now expects earnings per share of $2.33 and net revenues of $685.6 million. Earlier, the company forecast earnings per share of $2.21 and net revenues of $676.6 million.

Analysts expect the company to report full year 2014 earnings per share of $2.23 on revenue of $677.36 million.

In a separate statement, Grand Canyon Education said its board of directors has formed a committee of independent directors to explore options aimed at enhancing stockholder value.

The company said its board chose to form the committee after its management expressed a desire to explore the possibility of effecting a conversion of the University to a nonprofit entity.

The company noted that such a transaction would enable it to conduct itself in the future as a traditional nonprofit university on a level playing field with the other traditional universities with which it competes.

The transaction would also be in a manner consistent with which the company operated for 55 years prior to financial challenges that forced it to convert to a "for-profit entity" in 2004 as a means to solicit investment capital and remain in operation.