K12 shares plunge on weak enrollment, forecast
HERNDON, Va. (AP) — Shares of K12 plunged almost 40 percent Thursday after it revealed paltry enrollment numbers and the online educator issued a weak revenue forecast for the year.
The company said average student enrollment increased 5.7 percent to 128,550 in its managed public schools, which fell short of its own projections. K12 now expects annual revenue of between $905 million and $925 million. That's far short of $962.6 million that analysts were looking for, according to a poll by FactSet.
K12 said that demand is strong for its products and services, enrollment applications were up 11 percent compared to last year. But it said that actual enrollment did not increase by an equal amount due to performance issues at enrollment centers and delays in open enrollment periods for some schools.
The company, based in Herndon, Va., provides online education to help struggling students, families that homeschool or other students needing online services.
Shares of K12 Inc. slid $10.70 to $17.89 by early afternoon, close to a low for the year.