Apollo Group Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Apollo Group (NASDAQ:APOL) will unveil its latest earnings on Tuesday, October 16, 2012. Through its subsidiaries, Apollo Group offers innovative and unique educational programs and services both online and on-campus at the undergraduate, graduate, and doctoral levels.

Apollo Group Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 49 cents per share, a decline of 52% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 27.7% compared to last year’s $3.57.

Past Earnings Performance: Last quarter, the company beat estimates by 24 cents, coming in at profit of $1.20 a share versus the estimate of net income of 96 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the third quarter, profit fell 36.9% to $134 million ($1.13 a share) from $212.4 million ($1.51 a share) the year earlier, but exceeded analyst expectations. Revenue fell 8.5% to $1.13 billion from $1.24 billion.

Wall St. Revenue Expectations: On average, analysts predict $1.01 billion in revenue this quarter, a decline of 9.8% from the year-ago quarter. Analysts are forecasting total revenue of $4.29 billion for the year, a decline of 9.3% from last year’s revenue of $4.73 billion.

Stock Price Performance: Between July 17, 2012 and October 10, 2012, the stock price fell $2.91 (-9.4%), from $31.01 to $28.10. The stock price saw one of its best stretches over the last year between December 14, 2011 and December 27, 2011, when shares rose for nine straight days, increasing 10.3% (+$5.10) over that span. It saw one of its worst periods between April 26, 2012 and May 11, 2012 when shares fell for 12 straight days, dropping 12.8% (-$4.58) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.22 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Analyst Ratings: With nine analysts rating the stock a buy, one rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks).

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