Dive Brief:
- Bridgepoint Education, parent company of for-profit Ashford University and University of the Rockies, came in under analysts' expectations with a $700,000 net loss for the quarter ending June 30.
- This time last year, Bridgeport was announcing a $13 million net income, and the change shows the company’s troubles with enrollment and steep competition in the online education marketplace.
- The Bridgeport CEO told The San Diego Union-Tribune that a stronger job market is keeping students who inquire about degree programs from actually starting classes.
Dive Insight:
Apollo Education Group announced its earnings last month, reporting a major swing in net income from $14.6 million at the same time last year to a loss of $33.6 million at the time of the report. Apollo’s losses, like Bridgeport’s, were worse than expected. Another for-profit higher education provider, Strayer Education, announced a slight bump in enrollment for the latest quarter but reported its net income was down 13%.
The industry overall has been plagued by bad publicity and increasing competition as traditional colleges and universities step up their online education offerings. Regulators have been pressing for greater accountability among for-profits, but the Republicans leading the conversations in Congress about the Higher Education Act are fighting for a more balanced approach to the higher education field. Sen. Lamar Alexander (R-TN), chairman of his chamber’s education committee, wants all schools to be held to the same yardstick.
