Apollo Group (APOL) Lowers FY12 Operating Profit Outlook Folowing Enrollment Update
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Apollo Group, Inc. (Nasdaq: APOL) provided details on new degreed enrollment and the fiscal 2012 outlook in anticipation of its participation at the Robert W. Baird Business Solutions Conference on Wednesday, February 29, 2012. In addition, the Company announced details for its fiscal 2012 second quarter conference call.
New Degreed Enrollment and Business Outlook Update
The Company currently anticipates new degreed enrollment for the second quarter ending February 29, 2012, will reflect approximately flat to low-single-digit growth year-over-year on a percentage basis, as compared to previous expectations of growth similar to first quarter of fiscal 2012, which was approximately 13 percent. Adjusted to exclude the impact of an extra day in the second quarter of fiscal 2012, new degreed enrollment for the quarter is expected to decrease year-over-year in the low to mid-single digits, as compared to previous expectations of an increase in the mid-single digits. Management believes new degreed enrollment has been adversely impacted by a number of factors, including the improving labor market, the competitive environment, and changes in marketing channels to better identify potential students more likely to succeed at University of Phoenix.
The Company anticipates consolidated net revenue for fiscal year 2012 will be $4.1 to $4.3 billion, consistent with the previously provided outlook. The anticipated operating profit range for fiscal 2012 has been revised to $625 to $725 million, excluding the impact of special items, from the previous outlook of $655 to $750 million.
New Degreed Enrollment and Business Outlook Update
The Company currently anticipates new degreed enrollment for the second quarter ending February 29, 2012, will reflect approximately flat to low-single-digit growth year-over-year on a percentage basis, as compared to previous expectations of growth similar to first quarter of fiscal 2012, which was approximately 13 percent. Adjusted to exclude the impact of an extra day in the second quarter of fiscal 2012, new degreed enrollment for the quarter is expected to decrease year-over-year in the low to mid-single digits, as compared to previous expectations of an increase in the mid-single digits. Management believes new degreed enrollment has been adversely impacted by a number of factors, including the improving labor market, the competitive environment, and changes in marketing channels to better identify potential students more likely to succeed at University of Phoenix.
The Company anticipates consolidated net revenue for fiscal year 2012 will be $4.1 to $4.3 billion, consistent with the previously provided outlook. The anticipated operating profit range for fiscal 2012 has been revised to $625 to $725 million, excluding the impact of special items, from the previous outlook of $655 to $750 million.
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