NEWS: Apollo Group Inc. reported Tuesday that net income in its fiscal fourth quarter fell 71 percent as student enrollments shrank and the for-profit school booked restructuring charges.
Its adjusted profit beat market expectations and shares jumped in after-hours trading.
DETAILS: Enrollment has been falling for some time at many for-profit education companies in response to tighter regulation and a weak economic recovery. Apollo, which operates the University of Phoenix and other schools, said that total degreed enrollment fell 18 percent to 269,000. New student enrollments fell 22 percent to 41,000.
NUMBERS: Apollo earned $21.6 million, or 19 cents per share, for the quarter that ended Aug. 31. That is down from $75.4 million, or 66 cents per share, in the same quarter last year. Excluding one-time items such as $67.3 million in restructuring and other costs, it earned 55 cents per share versus 52 cents per share last year. Revenue fell 15 percent to $845 million.
Analysts polled by FactSet were anticipating earnings of 24 cents per share on revenue of $823.1 million.
FUTURE: The Phoenix-based company said it anticipates revenue between $2.95 billion and $3.05 billion for the year ending in August 2014. Analysts were expecting $3.2 billion.
STOCK: Shares of the company increased $2.57, or 12 percent, to $23.51 in after-hours trading. The stock is nearly unchanged this year.
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