Private education provider Apollo has reported weaker second quarter earnings after a pre-tax charge related to a class-action lawsuit -- but is spiking in pre-market trading on year-over-year increases in revenue and enrollment.
NEW YORK ( TheStreet) -- Private education provider Apollo ( APOL) has reported weaker second quarter earnings after a pre-tax charge related to a class-action lawsuit -- but is spiking in pre-market trading on year-over-year increases in revenue and enrollment. For the third quarter, Apollo is expecting earnings per share from continuing operations of about $1.55 excluding the impact of special items or additional share repurchases, but including a contribution from BPP; and consolidated net revenue, including BPP, of about $1.3 billion. Net income attributable to Apollo fell to $92.6 million, or 60 cents a share, compared with $125.3 million, or 77 cents a share in the year-ago period, impacted by a pre-tax charge of $44.5 million ($26.9 million net of tax), which represents an accrual related to a securities class-action lawsuit.
Excluding items, the company earned 84 cents a share. Revenue totaled about $1.07 billion, up 23.1% compared with $869.5 million the previous year, as the company experienced a 15.3% year-over-year increase in University of Phoenix total Degreed Enrollment to 458,600 as well as $53.6 million in revenue from recently acquired education company BPP. Wall Street had expected earnings of 81 cents a share on revenue of $1.07 billion. Apollo stock is up 3.9% to $63.70 in early morning trading, after spiking by 6.5% in the pre-market. -- Reported by Andrea Tse in New York Follow TheStreet.com on Twitter and become a fan on Facebook.