Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Apollo Group Profit Drops, Cuts Top End Of FY13 Revenue Outlook

Private education provider Apollo Group Inc. (APOL: Quote), Tuesday reported a decline in first-quarter profit, as revenues decreased on lower enrollments. Moving ahead, the company also lowered the top end of its revenue guidance for the full year 2013.

Commenting on the results, Chief Executive Greg Cappelli said, "In the first quarter, we continued to execute on our strategy to differentiate University of Phoenix, diversify Apollo Group and to further optimize our operations."

For profit education companies in US have been negatively impacted by the decline in students being enrolled amidst the high unemployment rate in the country. Degreed enrollment at the University of Phoenix dropped 14.3 percent, while new degreed enrollment decreased 15.1 percent.

Net revenue for the first quarter decreased to $1.06 billion from $1.17 billion last year.

Analysts polled by Thomson Reuters expected revenues of $1.03 billion for the quarter.

Phoenix, Arizona-based Apollo's attributable profit dropped to $133.5 million or $1.18 per share from $149.3 million or $1.14 per share last year.

Adjusted income from continuing operations declined to $1.22 per share from $1.26 per share last year.

On average, 17 analysts expected earnings of $0.90 per share for the quarter. Analysts' estimates typically exclude special items.

Operating expenses for the quarter decreased 9.4 percent to $824.2 million from last year, as costs for restructuring activities dropped.

Looking ahead to the full year 2013, Apollo now expects revenues of $3.65 billion to $3.75 billion, compared to prior estimate of $3.65 billion to $3.80 billion.

Analysts currently expect the company to generate revenues of $3.77 billion for the year.

APOL closed Tuesday's trading at $20.94, down $0.56 or 2.60%, on the Nasdaq. In after hours trade, the stock further slipped $0.84 or 4.01%.

Register
To receive FREE breaking news email alerts for Apollo Education Group Inc and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Global consumer confidence increased in the second quarter to reach the highest levels since the first quarter in 2007 as job optimism improved, results of a survey by Nielsen showed Tuesday. The Nielsen Global Consumer Confidence Index rose a point from the previous quarter to 97 in the second quarter.... Texas Instruments Inc., the world's largest maker of analog chips, said Monday after the markets closed that its second quarter profit rose 3% from last year, as revenue increased 8%. The company's quarterly earnings per share also came in above analysts' expectations as did its quarterly revenue. At the same time, the company gave an upbeat outlook for the third quarter. After coming under pressure in early trading on Monday, stocks regained some ground over the course of the trading session but still closed modestly lower. The pullback on the day partly offset the strength that was seen last week.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.