Oppenheimer: Lincoln Educational Services 2012 Outlook Slightly Light

According to a research report published today by Oppenheimer, Lincoln Educational Services' LINC stock was soft yesterday following reported 4Q11 EPS of $0.28. In the report, Oppenheimer commented, “Revenue was broadly in-line with expectations/guidance, while 10.5% operating margin topped our/consensus 7.6%/8.1% largely on SG&A management. 4Q11 starts declined 40% y/y vs. our/consensus of -37%/-36%, though average enrollment down 34% y/y was consistent with expectations. Revenue/EPS guidance for 1Q12 were below expectations, but 1Q12 start guidance of flat/down slightly was more than expected and 2012 start guidance of 6-8% was also favorable. Revenue guidance for 2012 was in line with/above expectations, but EPS guidance was slightly below consensus. Consistent with peers following similar 4Q11 results/2012 outlooks, LINC's stock was soft yesterday. However, we anticipate appreciation over 2012 as it progresses upon annual guidance.” Oppenheimer maintains its Outperform rating and $11 PT on Lincoln Educational Services, which closed yesterday at $7.67.