Educational services provider Apollo Group, Inc. (APOL) Monday reported a sharp decline in profit for the second quarter, as revenues dropped from the prior year amid lower enrollment.
Net income attributable to Apollo declined to $13.53 million or $0.12 per share from $63.88 million or $0.51 per share last year. Income from continuing operations was $0.49 per share in the second quarter 2012.
Results for the just concluded quarter included restructuring and other charges of $44.1 million and $6.4 million of credits associated with the favorable resolution of certain legal matters.
Excluding items, income from continuing operations was $38.0 million or $0.34 per share, while it stood at $72.2 million or $0.57 per share last year.
On average, 17 analysts polled by Thomson Reuters expected earnings of $0.18 per share for the quarter. Analysts' estimates typically exclude special items.
The company attributed the decrease in income from continuing operations to lower enrollment and an increase in marketing costs primarily due to higher advertising expense.
Net revenue for quarter dropped to $834.4 million from $962.7 million in the second quarter 2012. Analysts expected revenues of $822.80 million.
On March 22, Apollo's Board of Directors approved a share repurchase authorization up to $250 million. There is no expiration date on the repurchase authorization.
For the fiscal year, the company sees net revenue of $3.65 - $3.75 billion and operating income of $500.0 - $550.0 million, excluding special items. Analysts expect revenues of $3.73 billion for the year.
The stock, which closed at $17.04 on Friday, is adding 5.6 percent in pre-market activity.
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