Apollo Education Group Inc (APOL), a for-profit education provider, Tuesday reported a higher fourth-quarter profit due to lower restructuring and other expenses. Meanwhile revenues slipped as student enrollments at its University of Phoenix continued to wane. Earnings for the quarter topped Wall Street estimates, but revenues missed expectations.
Looking ahead, Apollo provided some weak revenue guidance for the first quarter and the full year.
Apollo Education, based in Phoenix, Arizona, posted quarterly net earnings of $29.8 million or $0.27 per share, compared with $21.6 million or $0.19 per share a year earlier.
Excluding items, adjusted earnings for the quarter were $0.34 per share, compared with $0.58 per share a year ago.
On average, 13 analysts polled by Thomson Reuters estimated earnings of $0.27 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the fourth quarter declined to $709.7 million from $836.4 million in the prior-year quarter.
Analysts expected revenues of $728.7 million for the quarter.
Results were helped by expenses that decreased to $667.7 million from $797.8 million last year, mainly on lower restructuring, advisory, and general costs.
During the quarter, new degreed enrollment at University of Phoenix slid 5.9 percent from last year to 38,600, and degreed enrollment slid 13.2 percent to 233,500. Apollo Education has been grappling with lower enrollments over the past quarters.
For the first quarter, Apollo Education expect revenues in the range of $720 million to $730 million. Analysts currently expect revenues of $763.7 million for the quarter.
For the fiscal year 2015, Apollo Education now expect revenues of $2.80 billion to $2.85 billion. Analysts currently expect revenues of $3.06 billion for the year.
APOL is trading at $26.22, up $0.47 or 1.83%, on a volume of 1.5 million shares on the Nasdaq.
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