By Tess Stynes
K12 Inc.'s /zigman2/quotes/205813628/composite LRN -4.13% fiscal second-quarter earnings more than doubled as the online education company continued to record double-digit revenue increases, mostly on growth at its core managed public schools business and the impact of year-earlier state-funding reductions.
For the year, the company affirmed earnings guidance and lowered the high end of its earlier revenue estimate. The company now expects revenue of $840 million to $860 million, from its prior estimate for $840 million to $870 million.
For the current quarter, the company forecast revenue of $210 million to $220 million, while analysts polled by Thomson Reuters expect $213 million.
K12, which conducts web classes for U.S. students in kindergarten through 12th grade, has seen its revenue steadily grow as demand for online education increases and student enrollment has jumped. However, the company's costs have also been on the rise.
For the quarter ended Dec. 31, K12 reported a profit of $9.5 million, or 24 cents a share, up from $4.2 million, or 11 cents a share, a year earlier. Analysts polled by Thomson Reuters most recently projected earnings of 22 cents a share.
Revenue increased 24% to $206 million. The company in November projected revenue of $205 million to $215 million.
K12 reported that managed public schools' average student enrollments climbed 14%. In the international and private pay business, cumulative student enrollments rose 11%, while semester course enrollments grew 1.5%.
Shares closed Monday at $18.53 and were inactive premarket. The stock is down 9.3% this year.
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