Dow Jones Newswires | Career Education Corp.’s first-quarter
profit more than doubled as the post-secondary education provider
reported a 23 percent increase in enrollment.

Career Education, which provides degrees in business, culinary arts and
health studies, also said it received an early indication that its
accrediting body may not sanction one of its schools. The college,
American InterContinental University, has been under scrutiny since the
federal government this winter expressed concern that the agency had
approved one of its programs.

Career Education said in a filing with the Securities and Exchange Commission that an advisory team from the agency, the Higher Learning Commission of the North Central Association of Colleges and Schools, visited the campus in January and suggested it wouldn’t issue any citations for violating accreditation criteria. The group said it didn’t recommend sanctions to full accrediting body, either. Career Education expects the final advisory report in the next few weeks, but said the full commission isn’t required to follow its recommendations.

Career Education reported first-quarter earnings of $55.2 million, or 66 cents a share, up from $23 million, or 26 cents a share, a year earlier. Revenue increased 22 percent, to $529.6 million.

Analysts polled by Thomson Reuters were expecting earnings of 64 cents on revenue of $519 million.

Operating margin jumped to 16.6 percent from 11.8 percent.

New-student starts jumped one-third.

Shares of Career Education were off 0.7 percent after hours, at $29.78. The stock has risen 29 percent this year.