The stock of online provider K12 Inc. took a steep plunge this week following its release of information showing more modest projections for revenue and student enrollment than analysts had anticipated.
In a statement released this week, the company estimated its average enrollment for the schools it manages at 128,000 students for the quarter, which was up nearly 6 percent from the first quarter of the previous year, yet "below management's expectations."
The Herndon, Va.-based company also said it expected revenues for the full fiscal year to range from $905 million to $925 million, and its operating income to fall between $53 million to $57 million, numbers that disappointed analysts.
The measure of Wall Street's dim view of K12's recent showing was reflected in the company's stock price, which plummeted from more than $29 a share to about $19 a share in the day following the release of its numbers. As of mid-afternoon today, the price was hovering above $18. (K12's stock took a comparable plunge in late 2011 following a wave of criticism directed at the company, before recovering.)
Whitney Tilson said a little while back that K-12 Inc was his largest short position.
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