Also, enrollments fell 16.8% at its flagship University of Phoenix.
Revenue declined 18.6% to $679.1 million, below analysts expectations. Excluding items, the company earned 28 cents per share.
Additionally, Apollo said it received a subpoena from the Department of Education's Office of Inspector General requesting information about the operations of the Northeast region of the University of Phoenix.
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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 solid stock price performance, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and feeble growth in the company's earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows: