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?