The stock of K12 Inc. took a steep plunge last week following its release of more modest revenue and student-enrollment projections than analysts had anticipated.
It estimated average enrollment at schools it manages at 128,000 students for the quarter, up nearly 6 percent from the previous year, yet “below management’s expectations.”
Expected revenues for the Herndon, Va.-based company, which operates schools in more than 30 states, also disappointed analysts.
Its stock price plummeted from more than $29 a share to about $19.
A version of this article appeared in the October 16, 2013 edition of Education Week as Online Provider’s Stock Sinks on Poor Projections