Slowing growth in new student applications could indicate an improving outlook for the job market. Corinthian Colleges (COCO) reported strong results today with their educational programs benefitting from soaring demand for re-training. New student starts jumped 27% in the latest quarter, with earnings from continuing operations up massively to 25 million dollars from about 5 million. Corinthian shares are up nearly 8% today as a result.
Nevertheless, while business is good, management actually expects student growth to slow in the next quarter to 15-17% and then down to 10-12% for the next year.
Given that growth in student starts have been a sort of reverse indicator for the state of the job market, perhaps Corinthian’s slowing outlook points to some improvement on the jobs front.
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