Earnings Preview: Apollo Group

| About: Apollo Education (APOL)

Apollo Group, Inc. (NASDAQ:APOL), through its subsidiaries, provides online and on-campus educational programs and services at the undergraduate, master's, and doctoral levels. Apollo Group is scheduled to report its third quarter earnings results on June 25, 2012, after market close.

Technical Overview

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Apollo has a market cap of $3.99 billion and it is currently trading around $33.12 with a 52-week range of $30.93 to $58.29. The stock has fallen 38.53% year to date. The following table provides the key financial ratios for Apollo:

Key Ratio Value
Current Ratio 1.32
PEG 1.32
P/E 7.31
Forward P/E 10.41
Profit Margin 13.43%
Return On Assets (ROA) 20.85%
Return On Equity (ROE) 51.13%

Recent News

  • On June 11, 2012, Apollo Group announced that former United States Secretary of Education Margaret Spellings will join the company's board of directors.
  • On March 26, 2012, Apollo Group announced that Allen ("Al") Weiss has been appointed to the company's board of directors, filling an existing vacancy. Mr. Weiss will serve as an independent director of the company, and will sit on the audit committee.

Here's a list of recent changes to analyst ratings:

  • On June 11, 2012, Thomas White/Global Capital upgraded Apollo Group from NEUTRAL to FAVORABLE.
  • On June 11, 2012, Thomson Reuters/Verus downgraded Apollo Group from BUY to HOLD.
  • On June 8, 2012, Ford Equity Research downgraded Apollo Group from BUY to HOLD.
  • On May 8, 2012, Thomson Reuters/Verus upgraded Apollo Group from HOLD to BUY.
  • On April 19, 2012, Thomson Reuters/Verus downgraded Apollo Group from BUY to HOLD.
  • On April 9, 2012, Ned Davis Research downgraded Apollo Group from BUY to NEUTRAL.
  • On April 2, 2012, Thomson Reuters/Verus upgraded Apollo Group from HOLD to BUY.
  • On March 30, 2012, Ford Equity Research upgraded Apollo Group from FAVORABLE to MOST FAVORABLE.
  • On March 29, 2012, Argus downgraded Apollo Education from BUY to HOLD.
  • On March 27, 2012, Credit Suisse downgraded Apollo Group from OUTPERFORM to NEUTRAL.
  • On March 27, 2012, Barclays maintained an OVERWEIGHT on Apollo Education (NASDAQ: ) price target lowered from $56 to $52.
  • On March 27, 2012, Deutsche Bank reiterated a HOLD rating on Apollo Education and lowered its price target from $45 to $40.

Analyst Guidance and Earnings History

The third quarter revenues are expected to be $1.12 billion when compared to $1.24 billion for the same quarter last year. Earnings per share for the third quarter are expected to be 97 cents a share, down from a $1.45 a share in the year-ago period.

The average price target from analyst for Apollo is $47.40 with average rating is OVERWEIGHT

Out of the last 4 quarters, Apollo has met or exceeded the EPS estimates all 4 times. The following chart shows the Analyst estimates history and the actual EPS results:

The following chart shows the annual summary of Sales and Net income for Apollo:

Sources: Some of the data is taken from Google Finance, Nasdaq, Yahoo Finance, Finviz and investor sites.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in APOL over the next 72 hours.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.