Piper Jaffray Reports on ChinaEdu

Piper Jaffray commented on ChinaEdu CEDU in a report released today. In the report, Piper Jaffray was mixed in its assessment of the company. Piper Jaffray writes, "ChinaEdu reported 1Q revenue of $14mil, essentially in-line with our and the street's estimate. GAAP EPS came in at $0.03, above our and the street's estimate of $0.01. 2Q11's revenue guidance of $15.3mil - $16mil brackets our estimate of $15.7mil. We anticipate near-term operating margins to be compressed by continued investment spending associated with the new business roll-out, and remain on the sidelines until we see signs of margin improvement." Piper Jaffray currently has a Neutral rating on ChinaEdu. Shares of CEDU closed at $6.40 on Wednesday, down 0.93% from the open.