Apollo Ed 1Q profit drop not as bad as feared

University of Phoenix owner Apollo Education reports 1Q profit drop as enrollments shrink

Associated Press

NEWS: Apollo Education Group Inc.'s shares rose in extended trading Tuesday after the for-profit education company reported a profit decline for its fiscal first quarter that wasn't as bad as Wall Street expected.

DETAILS: The company said enrollment at the University of Phoenix fell 18 percent to 263,000, while new student sign-ups fell 23 percent to 41,7000.

Enrollments have been shrinking at Apollo and other for-profit education companies for years in response to tighter regulation and the modest economic recovery.

NUMBERS: Net income fell to $98.9 million, or 87 cents per share, for the quarter that ended Nov. 30. That's compared with $133.5 million, or $1.18 per share, in the same period in 2012.

After adjusting for restructuring and other special items, earnings dropped to $1.04 per share from $1.22 per share. Analysts polled by FactSet were anticipating earnings of 90 cents per share.

Revenue slid 19 percent to $856.3 million from $1.1 billion. Wall Street predicted of $861.5 million.

FUTURE: The company said that it expects revenue between $3 and $3.1 billion for fiscal 2014; analysts had forecast $3.03 billion.

STOCK: Shares of Phoenix-based Apollo closed down 12 cents to $26.93 in regular trading. They added $1.06, or 3.9 percent, to $27.99 in the aftermarket.

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