Apollo Education Group, Inc. APOL is a leading private education service provider in the U.S. Apollo Education Group offers post-secondary career oriented programs to working adults through the company’s subsidiaries, University of Phoenix (UOP) and Apollo Global.
Apollo Education Group has been witnessing lower enrollments at the University of Phoenix which is offsetting strong growth at Apollo Global. University of Phoenix’s enrollments have declined since 2010 due to lower demand and competitive pressures. Though the company is undertaking several initiatives to transform UOP, it will take several quarters before enrollments rebound and stabilize. However, Apollo Global continues to perform well in the international markets, which lends some top-line support.
Investors should also note that earnings estimate for APOL has remained stable for sometime. However, APOL has posted three positive earnings surprise in the past four quarters, with an average surprise of 13.01%.
Currently, APOL has a Zacks Rank #3 (Hold), but that could definitely change following Apollo Education Group’ earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: APOL missed on earnings. Our consensus earnings estimate called for EPS of $0.31/share, and the company reported EPS of $0.29 instead. Investors should note that these figures take out stock option expenses.
Revenues: APOL reported revenues of $586 million. This missed our consensus estimate of $610 million.
Key Stats to Note: Enrollment at UOP declined 22.2% in the quarter. Concurrent with the first quarter fiscal 2016 earnings release, the company announced its plans to explore strategic options which can lead to a change in the control of the company. It believes this move will support its strategic initiatives.
Stock Price: Shares was up 10.47% during pre-market trading.
Check back later for our full write up on this APOL earnings report later!
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