Thursday, July 26, 2012

Two Big Losers: Strayer Education Inc & NovaGold Resources (STRA, NG)

Strayer Education Inc’s (NASDAQ:STRA) net income for the quarter to June fell to $21.2 million or $1.85 a share, coming just below analyst expectations though new student signs-ups were up 9 percent, the company said announcing its second quarter results on Thursday.

Should Investors Buy STRA Now? Get Free report

Strayer shares fell more than 14 percent and were trading at $77.90 in mid-morning trades after having closed at $90.70 on the Nasdaq on Wednesday

Strayer forecast third quarter earnings between 30 and 32 cents a share, lagging analyst expectations of 88 cents a share.

Strayer’s earnings for the June quarter fell 28.8 percent from the year-ago period, while revenues fell 11 percent to $146.3 million. Thomson Reuters data had estimated its earnings at $1.86 a share on revenue of $147.9 million.

Shares of NovaGold Resources Inc. (USA)(AMEX:NG) nose-dived in Thursday morning trades after peer Barrick Gold (NYSE:ABX) said in a release that the Donlin Gold project did not meet its investment criteria. NovaGold has a 50 percent stake in the Donlin Gold project.

NovaGold was trading down 20.82 percent at $4.26 at 11.45 a.m. after having fallen 30 percent earlier.
Barrick had said Donlin Gold project’s large initial capital outlay was outside the scope of its disciplined capital allocation framework. “We would not make a decision to construct them at this time."

No comments:

Post a Comment

Privacy Policy | Legal Disclaimer