Ambassadors Group drops 40% to 52-week low
Shares of Ambassadors Group Inc. (Nasdaq: EPAX) are taking a pounding and have hit a new 52-week low on news after the close on Monday that the educational travel company suffered a decline in net enrollments.
Spokane, Wash.-based Ambassadors Group, which organizes educational travel programs for students, athletes and professionals, announced that it had 26,200 net-enrolled participants as of Oct. 16, 2007. That’s a decline of 29.76% from 37,300 participants on the same date in 2007.
The company said that it anticipates the decline will negatively affect earnings in 2008, but it’s still too early to judge the extent of the damage.
President and CEO Jeff Thomas blamed the decline on global economic conditions.
“The dollar continues to weaken against most major currencies while fuel prices and airline fuel surcharges continue to hit all-time highs,” Thomas said in a statement. “These inflationary pressures on future program costs, combined with the under-performance of one of our name sources and the current economic uncertainty, creates a challenging environment in which to market our programs.”
Otherwise, Ambassadors Group reported solid third-quarter results.
Net income for the three months ended Sept. 30 was $22.5 million, or $1.12 per share, compared with $17.1 million, or $0.80 per share, during the same period in 2006.
At 3:25 p.m. ET, Ambassadors Group Inc. (EPAX) shares had tumbled $17.44, or 44%, to $22.51. That’s well below the previous 52-week low of $26.27, which was set on Nov. 3, 2006. The 52-week high of $41.08 was reached on Oct. 10.
