A Great Quarter for One Higher Education Company

Education Management Corporation, the company that owns for-profit colleges including Argosy University, Brown Mackie College, and Fullerton, California’s Western State University College of Law, is apparently having a bang-up fiscal quarter.

According to an article by Joan Solsman in the Wall Street Journal:

[The company’s] fiscal fourth-quarter earnings more than doubled as the for-profit higher education company’s results beat expectations.

For the quarter ended June 30, Education Management–which offers a broad range of academic programs–posted a profit of $47.9 million, or 33 cents a share, from $21.3 million, or 18 cents a share, a year earlier. In May, the company predicted 29 cents to 31 cents, above analysts’ then-expectations.

That’s great. One might think that the company is doing a really great job managing education, right? Well that’s debatable.

EMC was one of the 15 corporations found to be committing recruiting fraud in the scathing GAO report about for-profit colleges issued last week. EMC schools also have trouble with graduation rates, job placement, and student loan defaults.

So what’s driving the company’s success anyway?

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Daniel Luzer

Daniel Luzer is the news editor at Governing Magazine and former web editor of the Washington Monthly. Find him on Twitter: @Daniel_Luzer