Thread regarding Strayer University layoffs

Strayer is next.....http://www.theflyonthewall.com/permalinks/entry.php/APOLid1910370/APOL-Apollo-Group-names-J-Mitchell-Bowling-as-new-COO.....Strayer plummets after reporting enrollment decline...Shares of for-profit education company Strayer (STRA) are tumbling after the company announced that its total enrollment had plummeted 17%. WHAT'S NEW: Stayer reported that its total enrollment had dropped 17% during the 2013 fall term. Meanwhile, the company said it would reduce its tuition charges for new students by 20% starting on January 1, 2014 in order to "further address" the issue of college affordability. On a positive note, Strayer's third quarter profits and revenue exceeded expectations. Despite the better than expected results, Strayer said it plans to close about 20 of its colleges and reduce its workforce by 20%. ANALYST REACTION: In a note to investors, Deutsche Bank analyst Paul Ginocchio wrote that the number of new students at Strayer's schools had tumbled 23% during the fall term, versus his previous estimate of a 10% decline. The company's new enrollment trends continue to progressively weaken, he added. Strayer reported higher than expected third quarter EPS primarily because of its cost reductions, wrote the analyst, who kept a Sell rating on the stock. Similarly, BMO Capital analyst Jeffrey Silber reported that Strayer's total enrollment had fallen more sharply than he had anticipated. The company's EPS beat was caused by higher margins, mostly driven by cost reductions, the analyst stated. Silber kept a $40 price target and Market Perform rating on the stock. PRICE ACTION: In mid-morning trading, Strayer dropped 19% to $39.80.