** charts before earnings **
** charts after earnings **
** 1 day later **
Apollo Education misses by $0.02, misses on revs; exploring strategic alternatives :
- Reports Q1 (Nov) earnings of $0.29 per share, excluding $0.82 in non-recurring items,$0.02 worse than the Capital IQ Consensus of $0.31; revenues fell 18.0% year/year to $586 mln vs the $610.42 mln Capital IQ Consensus.
- First quarter 2016 University of Phoenix New Degreed Enrollment was 24,500 and Degreed Enrollment was 176,900, compared to New Degreed Enrollment of 39,600 and Degreed Enrollment of 227,400 for the prior year first quarter.
- Co this morning also announced The Board of Directors has made the determination to explore strategic alternatives while the Company continues to execute its ongoing business transformation.
- "The University of Phoenix team is implementing major components of its transformational plan as quickly as possible, and although this is having a near-term negative impact on revenue, we believe speed of execution will help the University return to stability more quickly. Apollo Global continues to expand and grow its network through a combination of high quality acquisitions and organic growth and is on-target for a record year. Finally, we have committed to incremental cost reductions in order to preserve our operating margin during this transformational period."
Private-equity firm Apollo Global Management was said to be in advanced talks to buy Apollo Education (no relation) for about $1B. The educator, operator of the for-profit University of Phoenix, had been in talks with a number of firms over a control-changing purchase. The latest news came after a see-saw Monday where Apollo Education (NASDAQ:APOL) gained strongly premarket following Q1 earnings; sank to a loss in the afternoon; and rocketed after hours on the AGM (NYSE:APO) deal report. A buyout could come in the next few weeks.
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