Earnings Preview: Apollo Group

Apollo Group (APOL) is expected to report Q3 earnings after market close on Tuesday, July 1, with a conference call scheduled for 5:00 pm ET.

Guidance

Analysts are looking for a profit of 78c on revenue of $807.33M. The consensus range is 72c to 83c for EPS, and revenue of $777.4M to $836.69M, according to First Call.

Analyst Views

On June 25, the for-profit educator announced the resignation of president Brian Mueller, effective immediately; CFO Joseph D'Amico was named interim president. Barrington said that despite operating in turnaround mode, the resignation was a surprise because, under his leadership, the company has generated strong results. S&P said that the unexpected resignation of a top executive is not typically a good development, but thinks Apollo has been taking positive steps to revive its business during a period of changing demographics and greater regulatory scrutiny. The firm also believes its management bench is deep enough to keep its business running efficiently until a CEO search is completed. Near-term, however, the Signal Hill firm said the news of Mueller's departure is "not terrific news for Apollo, as there will likely be turmoil". As for the quarter, Credit Suisse noted the company will be more aggressive with price increases than previously expected.