Apollo Education's first-quarter 2015 earnings of $0.44 per share
beat the Zacks Consensus Estimate by 7%. However, earnings declined
58.1% year over year due to worse than expected revenues and
profits and higher taxes. Revenue of $719.1 million missed the
estimates by 1.2%, and declined 15.2% year over year due to lower
enrollments at the University of Phoenix. University of Phoenix's
enrollments have declined since 2010 due to lower demand and
competitive pressures. As such, based on the soft business trends
in the first quarter of fiscal 2015, the company also has cut
revenue and operating income guidance for 2015. However,
encouragingly the rate of decline in starts has improved at a
steady level throughout 2014 and first quarter 2015. Also,
continued improvement in Apollo Global revenues is commendable. We
prefer to remain on the sidelines, till improvement in starts
offsets other headwinds.
Based in Phoenix, AZ, Apollo Education Group, Inc. (APOL) is a
leading private education service provider in the U.S. and has been
in the education business for more than 40 years. Apollo Education
offers undergraduate, graduate, professional development and other
non-degree educational programs and services, both online and
on-campus. These programs are offered through the company's
Apollo Education reports its operating results under the
University of Phoenix (UOP) It is the flagship segment that
offers undergraduate and graduate degrees in many programs
including business, education and nursing through its eight
colleges. The University has a ground campus network of 110
locations throughout the U.S. and Puerto Rico. However, the
majority of UOP students study online. The University has been
accredited by The Higher Learning Commission (HLC) of the North
Central Association of Colleges and Schools and also holds other
programmatic accreditations. UOP accounted for 87% of the company's
total fiscal 2014 revenue.
Apollo Global - Apollo Global aims to make investments in
international education market. Apollo Global, Inc. includes
revenues from the largest Apollo global subsidiary, BPP Holdings
plc, a U.K.-based company which provides education and training to
legal and finance professionals. BPP Holdings was acquired by
Apollo Global in Jul 2009. This segment also includes revenues from
other subsidiaries of Apollo Global in Chile (UNIACC and IACC) and
Mexico (ULA). Apollo Global also includes, Indian Education
Services Private Ltd., a joint venture with Indian media company,
HT Media Limited, to build Bridge School of Management in India.
The newest additions to Apollo Global segment are Open Colleges in
Australia, acquired in Dec 2013 and Milpark Education in South
Africa, acquired in May 2014.
Other The Other segment includes revenues from Western
International University (WIU) and The College for Financial
Planning Institutes Corporation, Inc (CFFP) (both accredited by HLC
in the U.S.) The segment also includes Carnegie Learning (a
publisher of research-based math curricula and adaptive learning
software acquired in Sep 2011) and Apollo Lightspeed (innovation
business unit). In the fourth quarter of fiscal 2014, the company
sold the Institute for Professional Development.
Apollo Education Group, Inc. (APOL): Read the Full
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
APOLLO GROUP (APOL): Free Stock Analysis Report
To read this article on Zacks.com click here.