logo
Share SHARE
FONT-SIZE Plus   Neg

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

Private education provider Apollo Group Inc. (APOL), 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%.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Life expectancy at birth in the U.S. is already lower than most other developed nations and is now projected to fall further behind by 2030, according to a new study. It also suggests that by 2030, national female life expectancy in South Korea could break the 90 year barrier. Department store chain J.C. Penney Co. Inc. on Friday reported a turnaround to profit in the fourth quarter as a slight decline in sales was more than offset by lower expenses. Adjusted earnings per share for the quarter beat analysts' expectations, while revenues slightly missed their estimates. Earlier today, J.C. Penny announced a plan to optimize its national retail operations. Google is planning to significantly expand a carpool service on its navigational app Waze, according to a report in the Wall Street Journal. The move indicates the company is edging closer to a potential clash with ride-hailing service Uber Technologies Inc.
comments powered by Disqus
RELATED NEWS
Trade APOL now with 
Follow RTT