Apollo Group, Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Apollo Group, Inc. (NASDAQ:APOL) will unveil its latest earnings on Thursday, June 30, 2011. 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.

Apollo Group, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst is estimating net income of $1.34 per share, a decline of 23% from the same quarter a year ago. Estimates range from profit of $1.18 per share to net income of $1.42 per share. Over the past three months, the consensus estimate has moved down from $1.37. Over the past month, the consensus estimate has moved down from $1.33. For the year, analysts are projecting profit of $4.69 per share, a decline of 12.3% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 14 cents, reporting net income of 83 cents per share against a mean estimate of profit of 69 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $1.2 billion in revenue this quarter, a decline of 10.4% from the year ago quarter. Analysts are forecasting total revenue of $4.67 billion for the year, from last year’s revenue of $4.93 billion.

Analyst Ratings: Analysts seem relatively indifferent about Apollo Group with 12 of 21 analysts surveyed maintaining a hold rating. While the average rating for the stock remains a hold, the strength of the rating has dwindled over the past three months.

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of three consecutive quarters of revenue increases. Revenue fell 2% in the second quarter and rose 4.4%in the first quarter, 17.1% in the fourth quarter of the last fiscal year and 27.2% in the third quarter of the last fiscal year.

Apollo Group’s loss in the latest quarter follows profits in the previous three quarters. The company reported a loss of of $64 million in the second quarter, a profit of $235.4 million in the first quarter, a profit of $42.8 million in the fourth of the last fiscal year and a profit of $179.5 million in the third quarter of the last fiscal year.

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 Price Performance: From a month ago, the stock price has risen $2.54 (6.4%) from $39.92 on May 25, 2011 to $42.46 on June 23, 2011. The stock price saw one of its best stretches over the last year between February 10, 2011 and February 18, 2011 when shares rose for seven-straight days, rising 7.2% (+$3.08) over that span. It saw one of its worst periods between March 4, 2011 and March 10, 2011 when shares fell for five-straight days, falling 5% (-$2.23) over that span. Shares are up $2.97 (+7.5%) year to date.

(Source: Xignite Financials)

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