Apollo Group Earnings: Takes a Turn in Wrong Direction

Apollo Group Inc. (NASDAQ:APOL) saw its profit and revenue decline this quarter relative to the same quarter a year ago. Despite topping analyst estimates, the dip was not enough to please shareholders. Shares are down 3.53%.

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Apollo Group Inc. Earnings Cheat Sheet

Results: Net income decreased -10.59% to $133.5 million ($1.18 per diluted share) in the quarter versus a net gain of $149.31 million in the year-earlier quarter.

Revenue: Decreased 6.68% to $1.1 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Apollo Group Inc. reported adjusted net income of $1.18 per share. By that measure, the company beat the mean analyst estimate of $0.9. It beat the average revenue estimate of $1.03 billion.

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Quoting Management: “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,” said Apollo Group Chief Executive Officer Greg Cappelli. “We are rolling out new career-oriented tools for students, as well as working with leading companies to help them meet their needs to develop an educated workforce. We are committed to become the educator of choice to connect education to careers and believe this approach will position us for long-term success.”

Key Stats:

Revenue increased 12.9% from $974.29 million in the previous quarter. Net income increased 76.94% from $75.45 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.41 to a profit $0.3. For the current year, the average estimate has moved down from a profit of $3.13 to a profit of $2.72 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)