Although Apollo’s (APOL) fiscal Q4 results met expectations, the University of Phoenix operator...


Although Apollo’s (APOL) fiscal Q4 results met expectations, the University of Phoenix operator withdrew its previously announced FY11 forecast, saying an enrollment decline is expected to accelerate and result in a significant Y/Y decline. APOL -11.4% AH. Peer education/school stocks sink: CECO -6.1%, COCO -4.5%, DV -5.1%, STRA -5.4%, ESI -6.5% AH.

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Comments (4)
  • Gary Jakacky
    , contributor
    Comments (2954) | Send Message
     
    At this rate the stockholders will be as poor as the adjunct professors who earn $900 (no insurance and benefits) teaching an eight week class for these schools. I Haven't liked Apollo since the Trojan War. :)
    13 Oct 2010, 07:34 PM Reply Like
  • avocadomousse
    , contributor
    Comments (49) | Send Message
     
    AH bloodbath in for-profit colleges!
    13 Oct 2010, 07:47 PM Reply Like
  • ebworthen
    , contributor
    Comments (2799) | Send Message
     
    The government is going after for profit's because they compete with the government schools; and because all student loans now go through the Federal Government.

     

    So, the Government has an incentive to push it's own loan (tuition) dollars to State Land-Grant and other non-private institutions that keep the revenue in the government loop.
    13 Oct 2010, 10:37 PM Reply Like
  • Matthew Green
    , contributor
    Comments (457) | Send Message
     
    Carl Quintanilla just now on SB; "and the for-profit sector this morning making investors wish they hadn't gone back to school this fall."

     

    The business model of these institutions will evolve over time. As the population grows they will pick up the slack of the extra population needing postsecondary education to change careers or for general continuing education. With those who graduated from high school this decade likely to have 4-6 careers on average, and the gradual transition to a knowledge-based economy, they will find their place. The model they were built on the past two decades, continually expanding enrollment to grow revenues, simply doesn't work consistently anymore.
    14 Oct 2010, 09:06 AM Reply Like
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