Apollo Education Group (APOL) Stock Price Target Lowered by Analysts

NEW YORK (TheStreet) -- Apollo Education Group (APOL) stock price target was lowered by analysts at Deutsche Bank Markets Research to $20 from $22 with a "hold" rating. 

On Tuesday, shares are plunging 14.12% to $13.35.

This action comes after the company reported weak third quarter 2015 earnings yesterday. Apollo reported revenue of $681.5 million, or 44 cents diluted earnings per share, or 53 cents per share excluding special items. In the previous year, the company reported revenue of $793.6 million in the same quarter. 

For the latest quarter, reported income was $48.1 million, or 44 cents per share, compared to $68.1 million, or 61 cents per share in the same quarter the previous year.

Apollo missed analysts' estimates who expected the company to report earnings of 47 cents per share on revenue of $698.7 million, according to analysts polled by Thomson Reuters.

The company has seen its enrollment numbers pressured, due to stricter regulation that reduced for-profit colleges' share of U.S. financial aid for students that such school depend on for most of the revenue, The Wall Street Journal reports.

However, going forward, management believes enrollment is sustainable, according to the analyst note. 

Separately, TheStreet Ratings team rates APOLLO EDUCATION GROUP INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate APOLLO EDUCATION GROUP INC (APOL) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and weak operating cash flow."

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