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Apollo Education Group (APOL) Misses Q2 EPS by 21c, Withdraws Prior Guidance

April 6, 2016 4:31 PM EDT

Apollo Education Group (NASDAQ: APOL) reported Q2 EPS of ($0.31), $0.21 worse than the analyst estimate of ($0.10). Revenue for the quarter came in at $465.3 million versus the consensus estimate of $469.08 million.

Business Outlook

The Company continues to experience headwinds causing further reductions to the operating outlook for the year. Domestically, the primary factors include lower New Degreed Enrollment and fewer than expected continuing students at the University of Phoenix. This is in part attributable to the implementation of components of the university’s transformation plan, including the reduction in the frequency of course start dates, which has impacted the timing of student breaks and reenrollment. In addition, we have reduced the number of associate programs, realigned the campus strategy, focused on a new approach to admissions diagnostics, and discontinued the use of any third-party marketing affiliates. Internationally, the strengthening of the U.S. dollar relative to other currencies is negatively impacting reported revenue. While efforts to reduce expenses remain on track, the latest projections for Revenue, Operating Income and Degreed Enrollment are below the outlook provided on the first quarter earnings call. Due to the pending merger transaction and the challenges in accurately forecasting operating results during the implementation of the transformational plan for the University of Phoenix, the Company is withdrawing the prior guidance issued on the first quarter earnings call on January 11, 2016, and is not providing an updated financial outlook at this time.

For earnings history and earnings-related data on Apollo Education Group (APOL) click here.



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