Apollo Group, Inc. Earnings Cheat Sheet: Sees Profit Move Up

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

Results: Net income for Apollo Group, Inc. rose to $213.3 million ($1.51 per share) vs. $179.5 million ($1.18 per share) in the same quarter a year earlier. This marks a rise of 18.8% from the year earlier quarter.

Revenue: Fell 7.6% to $1.24 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: APOL reported adjusted net income of $1.45 per share. By that measure, the company beat the mean estimate of $1.34 per share. Estimates ranged from $1.18 per share to $1.42 per share. It beat the average revenue estimate of $1.2 billion.

Quoting Management: “During the third quarter, we continued to execute on our key initiatives to improve outcomes, enhance student protections, and elevate the educational experience throughout every touch point of the student lifecycle,” said Apollo Group Co-Chief Executive Officer and Apollo Global Chairman Greg Cappelli. “We are encouraged by the progress we are making in improving retention rates and continuing to shift the mix of our students toward higher degree level programs.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 14 cents in the second quarter, by 28 cents in the first quarter, and by 2 cents in the fourth quarter of the last fiscal year.

Revenue has fallen in the past two quarters. In the second quarter, revenue declined 2% to $1.05 billion from the year earlier quarter.

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).

Stock Performance: Shares of APOL are down over 1.5% after hours.

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(Source: Xignite Financials)