Deutsche Bank Slashes Numbers on Apollo Group on Weak Q1 Results, Enrollment
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Price: $10.00 --0%
Rating Summary:
5 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 8 | New: 36
Rating Summary:
5 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 8 | New: 36
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Deutsche Bank cut its price target on Apollo Group (NASDAQ: APOL) from $21 to $17 following results and lower enrollment. The firm maintained a Sell rating.
The firm comments, "Marketing expense is now rising YoY while grants to students are also rising significantly, which suggests a continued tough environment for new enrollment despite the easier comps... Apollo did not provide any qualitative guidance for new enrollment trends in the Feb quarter beyond that December, the smallest month of the year, was worse than the -15% YoY in the Nov. quarter. For the first full week in January (the biggest month of the year), the Univ. of Phoenix’s keyword search trends worsened materially, from -14% in the Nov quarter to –38% - but remember it is only the first week of the month. The increasing grants to students also suggests difficulty in new enrollment trends, in our view."
Deutsche Bank said they are not overly concerned with the HLC draft report.
The firm cut FY 2Q13 EPS from $0.32 to $0.18 (Street $0.30), FY13 from $2.53 to $2.47 (Street $2.72) and FY14 from $1.79 to $1.65 (Street $2.87).
For an analyst ratings summary and ratings history on Apollo Education click here. For more ratings news on Apollo Education click here.
Shares of Apollo Education closed at $20.94 yesterday.
The firm comments, "Marketing expense is now rising YoY while grants to students are also rising significantly, which suggests a continued tough environment for new enrollment despite the easier comps... Apollo did not provide any qualitative guidance for new enrollment trends in the Feb quarter beyond that December, the smallest month of the year, was worse than the -15% YoY in the Nov. quarter. For the first full week in January (the biggest month of the year), the Univ. of Phoenix’s keyword search trends worsened materially, from -14% in the Nov quarter to –38% - but remember it is only the first week of the month. The increasing grants to students also suggests difficulty in new enrollment trends, in our view."
Deutsche Bank said they are not overly concerned with the HLC draft report.
The firm cut FY 2Q13 EPS from $0.32 to $0.18 (Street $0.30), FY13 from $2.53 to $2.47 (Street $2.72) and FY14 from $1.79 to $1.65 (Street $2.87).
For an analyst ratings summary and ratings history on Apollo Education click here. For more ratings news on Apollo Education click here.
Shares of Apollo Education closed at $20.94 yesterday.
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