The top pre-market NASDAQ Stock Market gainers are: Corinthian Colleges, Education Management, Career Education, Strayer Education, Apollo Group, Charming Shoppes, and Lincoln Educational Services. The top pre-market NASDAQ Stock Market losers are: Exide Technologies, Vera Bradley Designs, Ameristar Casinos, AudioCodes, and ARM Holdings.
Corinthian Colleges Inc. (COCO) stock jumped 27.07 percent to $5.07 in the pre-market trading. Education Department officials briefed Congress on rules governing access to federal loans and would formally release the regulations today. Shares of companies such as Apollo Group (APOL), which jumped 11.42 percent to $47.01, Corinthian Colleges, and Career Education Corp. (CECO), which climbed 13.69 percent to $26, rallied on the news, and option activity turned increasingly bullish as the session progressed.
A rule that threatens to cut off tuition aid to some programs run by for-profit colleges was softened in the final version issued by the U.S. Education Department on Thursday, according to a Reuters report. Officials delayed until 2015 before a program can be denied tuition loans over too many former students in the same course having defaulted on their loans. Under the latest rule, which is due to go into effect mid-2012, at least 35 percent of graduates and dropouts of programs must be paying back loans, or their loan payments must equal 30 percent of discretionary income or 12 percent of total earnings. Other new rules require schools to disclose graduation rates and job placement rates to new students.
Education Management Corp. (EDMC) stock advanced 14.53 percent to $23.25 in the pre-market trading.
Strayer Education Inc. (STRA) stock jumped 12.83 percent to $137.50 in the pre-market trading.
Charming Shoppes Inc. (CHRS) stock climbed 11.37 percent to $4.31 in the pre-market trading. Profit for the first quarter was $26.04 million or $0.22 per share, up from $3.9 million or $0.03 per share last year. Adjusted earnings rose to $0.17 per share from $0.04 per share. Sales was $504.35 million, compared to $504.81 million last year. Analysts had expected profit of $0.12 per share on revenue of $506.76 million. Comparable store sales increased 2 percent.
Lincoln Educational Services Corp. (LINC) stock advanced 11.24 percent to $16.23 in the pre-market trading.
Exide Technologies (XIDE) stock plunged 15.04 percent to $8.25 in the pre-market trading. Adjusted profit for the fourth quarter was $12.9 million or $0.15 per share, down from $37.5 million or $0.49 per share last year. Sales grew to $774.5 million from $714.7 million. Analysts had expected profit of $0.25 per share on revenue of $756 million. Looking ahead, Exide expects first-quarter earnings to slightly shrink on account of higher costs and delayed pricing action.
Vera Bradley Designs, Inc. (VRA) stock fell 9.99 percent to $42.90 in the pre-market trading. Profit for the first quarter was $11.2 million or $0.28 per share, down from $16.8 million or $0.47 per share last year. Adjusted profit was $11.2 million or $0.28 per share, up from $10.2 million or $0.25 per share last year. Revenue rose to $101.4 million from $85.0 million. Analysts had expected profit of $0.27 per share on revenue of $100.23 million.
The company expects second quarter earnings of $0.27 to $0.29 per share and revenue of $95 million to $98 million, while Street predicts profit of $0.26 per share on revenue of $94.85 million. For the fiscal 2012, the company expects earnings of $1.27 to $1.30 per share and revenue of $430 million to $435 million, while Street predicts profit of $1.28 per share on revenue of $433.69 million.
Ameristar Casinos Inc. (ASCA) stock tumbled 4.08 percent to $21.15 in the pre-market trading. Goldman Sachs downgraded its rating on shares of Ameristar Casinos to sell from neutral based on valuation, weakening fundamentals, and lack of catalysts.
AudioCodes Ltd. (AUDC) stock declined 1.17 percent to $5.08 in the pre-market trading.
ARM Holdings plc (ARMH) stock decreased 1.15 percent to $27.47 in the pre-market trading.