Apollo Group, Inc. Earnings Cheat Sheet: Increase in Profit Year Over Year

S&P 500 (NYSE:SPY) component Apollo Group, Inc. (NASDAQ:APOL) reported net income above Wall Street’s expectations for the fourth quarter. 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.

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Apollo Group Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Apollo Group, Inc. rose to $188.6 million ($1.37 per share) vs. $41 million (28 cents per share) in the same quarter a year earlier. This is a more than fourfold rise from the year earlier quarter.

Revenue: Fell 10.9% to $1.12 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: APOL reported adjusted net income of $1.02 per share. By that measure, the company beat the mean estimate of 93 cents per share. Analysts were expecting revenue of $1.1 billion.

Quoting Management: “We set out at the beginning of 2011 to implement leading-edge student protections, differentiate University of Phoenix, and expand our business,” said Apollo Group Co-Chief Executive Officer Chas Edelstein. “We are pleased with our progress in each of these areas, including enhancing our student-centric approach to admissions, launching University Orientation, investing in our learning platform, and advancing our plans to incorporate adaptive learning and connect education to careers.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 11 cents in the third quarter, by 14 cents in the second quarter, and by 28 cents in the first quarter.

Revenue has fallen for the past three quarters. In the third quarter, revenue declined 7.6% to $1.24 billion while the figure fell 2% in the second quarter from the year earlier.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for first quarter of the next fiscal year has fallen from $1.13 per share to $1.12. For the fiscal year, the average estimate has been unchanged at $4.85 a share.

Competitors to Watch: Career Education Corp. (NASDAQ:CECO), DeVry Inc. (NYSE:DV), Corinthian Colleges, Inc. (NASDAQ:COCO), Strayer Education, Inc. (NASDAQ:STRA), Grand Canyon Education Inc (NASDAQ:LOPE), American Public Education, Inc. (NASDAQ:APEI), ITT Educational Services, Inc. (NYSE:ESI), National American Univ. Hldgs., Inc. (NASDAQ:NAUH), Bridgepoint Education, Inc. (NYSE:BPI), and Education Management Corp (NASDAQ:EDMC).

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

(Source: Xignite Financials)

 

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