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%.
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by RTT Staff Writer
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