Apollo Education Group (APOL) Stock Is Down Today After Earnings Report
NEW YORK (TheStreet) -- Shares of Apollo Education Group (APOL) were falling 22.2% to $21.77 on heavy trading volume Wednesday after the for-profit school reported its fiscal second quarter results which were hurt by lower enrollment.
Apollo Education Group reported a loss of 10 cents a share for the fiscal second quarter, above analysts' estimates of a loss of 16 cents a share. Revenue fell 14% year over year to $578.57 million for the quarter, below analysts' estimates of $584.61 million.
The company said that new degreed fell 12.9% from the year-ago quarter to 28,300 in the fiscal second quarter. Total degreed enrollment at the University of Phoenix fell 14.6% year over year to 213,800 in the fiscal second quarter.
Apollo Education Group said it expects to report revenue of $690 million to $705 million for the fiscal third quarter, below analysts' estimates of $740.86 million. The company expects revenue of $2.63 billion to $2.68 billion for fiscal year 2015, below analysts' estimates of $2.73 billion for the fiscal year.
About 3.2 million shares of Apollo Education Group were traded by 10:11 a.m. Wednesday, about the average trading volume of about 1.2 million shares a day.
TheStreet Ratings team rates APOLLO EDUCATION GROUP INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate APOLLO EDUCATION GROUP INC (APOL) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income."
You can view the full analysis from the report here: APOL Ratings Report