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Apollo Group, Inc. (APOL), through its subsidiaries, provides online and on-campus educational programs and services at the undergraduate, master's, and doctoral levels. The company offers various degree programs in arts and sciences, business and management, criminal justice and security, education, healthcare, human services, nursing, psychology and technology through its campus locations and learning centers in 40 states and the District of Columbia, and Puerto Rico, as well as through its online education delivery system.

It is scheduled to report its Q3 2012 results on June 25, 2012, after the market closes.

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.58 EPS, beating analyst estimates of $0.37.

The consensus EPS is $0.97 based on 16 analysts' estimates, down from $1.45 a year ago. Revenue estimates are $1.12B, down from $1.24B a year ago. The median target price by analysts for the stock is $48.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On April 9, 2012, Barclays reiterated Overweight rating for the company.
  • On March 28, 2012, the company was downgraded from Buy to Hold at Argus.
  • On March 27, 2012, Barclays reiterated Overweight rating for the company.
  • On February 28, 2012, the company was downgraded from Buy to Hold at Deutsche Bank.
  • On February 27, 2012, the company was upgraded from Equal Weight to Overweight at Barclays Capital.
  • On January 6, 2012, Barrington Research reiterated Outperform rating for the company.

Key Metrics

  • Market Cap: 3.96B
  • 52-week trading range: 30.93 - 58.29
  • Trailing P/E: 7.14
  • Forward P/E: 10.32
  • Price/Sales: 0.88
  • Price/Book: 3.65
  • PEG Ratio: 1.94
  • Total Debt: 127.51M
  • Annual dividend yield: N/A
  • Return on Equity: 50.30%
  • Return on Assets: 21.34%

Latest Developments

  • On March 26, 2012, Apollo Group Inc. announced that for fiscal 2012, it expects net revenue to be in the range of $4.1-4.3 billion and operating income, excluding the impact of special items (EBIT) to be in the range of $625-$725 million.
  • On February 28, 2012, Apollo Group Inc. announced that for fiscal 2012, the company anticipates consolidated net revenue to be $4.1 to $4.3 billion, consistent with the previously provided outlook and anticipated operating profit (EBIT) range has been revised to $625 to $725 million, excluding the impact of special items, from the previous outlook of $655 to $750 million.
  • On January 5, 2012, Apollo Group Inc. announced that Charles B. "Chas" Edelstein will retire as co-Chief Executive Officer and director of the company on August 26, 2012.

Competitors

Apollo Group Inc. operates in Education & Training Services industry. The company could be compared with Bridgepoint Education, Inc. (BPI), DeVry, Inc. (DV), Education Management Corporation (EDMC), and ITT Educational Services Inc. (ESI). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

(click to enlarge)APOL Chart

APOL data by YCharts

Competitors' Latest Development

  • On May 22, 2012, The Shuman Law Firm announced that it is investigating potential claims against certain officers and directors of Education Management Corp. (Education Management or the company).
  • On May 15, 2012, DeVry Inc announced that its Board of Directors has declared a semi-annual cash dividend on DeVry's common stock of $0.15 per share, payable on July 12, 2011, to common stockholders of record as of June 21, 2011.
  • On May 2, 2012, Education Management Corp. announced that for the fourth quarter of 2012, net income, EBITDA and diluted earnings per share are expected to be between $8 million and $11 million, $85 million and $90 million, and $0.06 and $0.08, respectively.
  • On May 1, 2012, Bridgepoint Education Inc announced that based on the company's results in the first quarter of 2012, the company has updated fiscal 2012 net income and earnings per share guidance to reflect the Settlement Expense, and has reaffirmed fiscal 2012 guidance.
  • On April 25, 2012, Devry Inc announced that for fiscal 2013, it expects revenue to be flat to slightly down. According to I/B/E/S Estimates, analysts are expecting the company to report revenue of $2.032 billion for fiscal 2013.
  • On April 3, 2012, Becker Professional Education, part of DeVry Inc., announced the acquisition of Falcon Physician Reviews. The transaction marks Becker's entrance into the growing healthcare professional education market.
  • On March 6, 2012, Bridgepoint Education Inc announced that for fiscal 2012, it expects revenue to be between $1.01-$1.03 billion, net income to be between $138.2-$143.7 million and fully diluted earnings per common share (EPS) to be between $2.45-$2.55.
  • On February 1, 2012, Devry Inc announced that it has entered into a definitive agreement to acquire Faculdade Boa Viagem. The transaction is expected to be completed within 30 days.
  • On February 1, 2012, Education Management Corp. announced that for the third quarter of 2012, it expects net income, EBITDA and diluted earnings per share to be between $34-$36 million, $123-$127 million and $0.27-$0.28, respectively.
  • On January 26, 2012, ITT Educational Services, Inc. announced that for fiscal 2012, it expects internal EPS goal is in the range of $7.50 to $8.50.

Technical Insight


The stock is trading at the lowest level in the recent years. It is currently below 50- and 200-SMA on the daily chart.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Apollo Group