- Goldman Sachs is looking for EPS of 96 cents in the quarter.
The firm recently initiated coverage on Apollo at Neutral, saying
it wasn't convinced "it will see the -2% yoy revenue implied by
consensus next year."
In terms of revenue growth, Goldman said, "Our estimates are in
line with consensus for this year, 4% below in 2013, including
buybacks and some cost reductions. We see margins remaining
depressed through 2014, though view its efforts to differentiate
on technology both in its own product and as an enabler for
Drivers to growth include shifting to higher-level degrees from a
glut of associate's students, as well as reshaping overhead costs
to come more in-line with recent enrollment declines.
- Wells Fargo sees EPS of 94 cents and revs of $1.15 billion.
The firm thinks investors will likely focus on cost per start and
better conversion rates, not to mention guidance which highlights
momentum from the third quarter (where new enrollments could
break into negative double-digits).
- Deutsche Bank is looking for EPS of $1.16, new enrollments of
50.4K, and revs of $1.12 billion. Reasoning for recent
underperformance include: "weak enrollment trends and 3Q outlook,
the impending release of gainful employment (
) data, as well as ongoing noise in Washington DC around 90/10,
military aid, student loan interest rates." Deutsche is also
maintaining a cautious outlook given macro trends, weak
enrollment, and political volatility heading into November
Stay tuned to StreetInsider.com's
section to see our analysis of the highly-anticipated quarterly
results within seconds of their release. You can also check out
Apollo Group's past performance at Streetinsider's
Apollo Group's Income Statement
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.