This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Apollo Rebounds on Expectations Beat

(Apollo Group earnings report updated with analyst commentary and quotes from the company's conference call .)
PHOENIX ( TheStreet) -- Apollo Group (APOL - Get Report) shares soared Tuesday thanks to an earnings beat posted late Monday.

Apollo shares jumped 13.4% to close at $40.74 on Tuesday. The stock had fallen sharply in Monday's trading session after sector peer Strayer Education (STRA - Get Report) said student enrollment in its programs fell by double-digit percentages.

Apollo Group, the parent company of University of Phoenix and other for-profit postsecondary education programs, posted fiscal-first quarter profits of $235.4 million, or $1.61 per share, down 2% from year-earlier earnings of $240.1 million, or 1.54 per share.

Despite the profit decline, Apollo handily beat expectations for earnings of $1.35 per share, or $197.7 million.

Revenue came in at $1.33 billion, up 5.4% from year-earlier revenue of $1.26 billion, driven largely by tuition price increases at Apollo's flagship University of Phoenix. Top-line results also beat expectations. Analysts' consensus call had been for revenue of $1.26 billion.

"Outlook for most of these companies in the space still remains murky," said Stern Agee & Leach analyst Arvind Bhatia.

Height Analytics analyst Jarrel Price said "we are encouraged that the cost of positioning the company for future success is not worse than expected given industry trends."

"We do not think yesterday's first-quarter announcement indicated a meaningful acceleration in Apollo's recovery," he added.

RBC Capital Markets analyst Robert Wetenhall said that "investors are starting to give Apollo credit for improving the quality of its business model, but remain cautious due to poor enrollment visibility."
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
COCO $0.01 1.49%
APOL $8.73 -0.46%
CECO $5.27 -2.90%
CPLA $54.26 -0.59%
DV $16.59 -3.80%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs