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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Apollo Soars as Profit Forecast Beats Estimates

NEW YORK (TheStreet) -- Apollo Group (APOL) shares were soaring Monday, trading above their 50-day moving average even after the for-profit education company reported a decline in student enrollments.

Apollo was up 8.3% to $18.46, a premium to its 50-day moving average of $18.10 as the Phoenix-based company reaffirmed its fiscal 2013 outlook. Apollo's forecast, excluding one-time items, calls for net revenue of $3.65 billion to $3.75 billion on operating income of $500 million to $550 million. Analysts, on average, were expecting current-year revenues of $3.73 billion.

The projection comes despite higher marketing costs and lower enrollment, illustrated by a 15.5% decrease at the University of Phoenix and 20.1% decline in new-degree graduations.

Trading volumes were unusually high, with 7.77 million shares changing hands, about three times its average daily trading volume.

The University of Phoenix owner said its restructuring plans should help the company cut annual operating expenses by at least $350 million by fiscal 2014, which may result in $50 million more in savings than it previously expected.

Apollo's income dropped 78% to $13.5 million in the second quarter, or 12 cents a share, though adjusted earnings came in at 34 cents a share on revenue of $834.4 million, which blew past the average analyst estimate of 18 cents a share on revenue of $822.8 million, according to Thomson One Analytics.

Apollo shares have slid more than 56% over the past year.

Written by Andrea Tse in New York

>To contact the writer of this article, click here: Andrea Tse.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,661.39 -218.97 -1.30%
S&P 500 1,942.67 -27.40 -1.39%
NASDAQ 4,392.1950 -70.7070 -1.58%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs