Apollo Earnings Cheat Sheet: Strong Report Yields Rising Shares

S&P 500 (NYSE:SPY) component Apollo Group Inc. (NASDAQ:APOL) reported its results for the third quarter. Through its subsidiaries, Apollo Group offers innovative and unique educational programs and services both online and on-campus at the undergraduate, graduate, and doctoral levels.

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Apollo Group Inc. Earnings Cheat Sheet

Results: Net income for Apollo Group Inc. fell to $134 million ($1.13 per share) vs. $212.4 million ($1.51 per share) a year earlier. This is a decline of 36.9% from the year-earlier quarter.

Revenue: Fell 8.5% to $1.13 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Apollo Group Inc. reported adjusted net income of $1.20 per share. By that measure, the company beat the mean estimate of 96 cents per share. Analysts were expecting revenue of $1.12 billion.

Quoting Management: “We are focused on delivering the best possible experience and service to support working adults, to address workforce needs, and to strengthen the connection to careers for our students,” said Apollo Group Co-Chief Executive Officer Chas Edelstein. “Evaluating key touch points, we are creating programs and support services that allow our students to focus on learning, experiencing achievements along the way to help inspire them and enhance their long-term outcomes.”

Key Stats:

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 19 cents in the second quarter, by 10 cents in the first quarter, and by 9 cents in the fourth quarter of the last fiscal year.

Revenue has dropped for four quarters in a row. Revenue declined 7.5% to $969.6 million in the second quarter. The figure fell 11.1% in the first quarter from the year earlier and dropped 10.9% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 60 cents a share to 55 cents over the last ninety days. For the fiscal year, the average estimate has moved up from $3.23 a share to $3.37 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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