Nice analysis -- or at least I think it is nice, because it agrees exactly with mine. ;-) Say they do 7% margins on $150M. That's about $10M or $2.50/share. And that's a forward P/E of 3. I heartily recommend spending the time to look at not only the 8-k, but also the earnings transcript: http://seekingalpha.com/symbol/EDUC. Stop by the $EDUC board sometime. It is a new stock to me, but I'm liking what I see.