Apollo (APOL) Beats on EPS, Misses Revenue

Apollo Education Group, Inc. (APOL) shares are down $4.05, or 16%, to $23.50 in pre-market trading Wednesday after the company reported its 2015 second quarter earnings results.

The education services firm reported non-GAAP earnings of ($0.10) per share on revenues of $578.6 million, down 14.0% from a year ago. Analysts were expecting EPS of ($0.16) on revenues of $585.07 million.

For the first six months of 2015, net revenues totaled $1.3 billion, compared to $1.5 billion in the corresponding period in 2014. Excluding special items, income attributable to Apollo Group was $37.4 million, or $0.34 per share, compared to $153.2 million, or $1.35/shr, for the first six months of 2014.

For full fiscal year 2015, APOL provided revenue guidance of $690.00 – $705.00 million, compared to the consensus revenue estimate of $741.27 million. Operating income is expected between $85.00 – $95.00 million, excluding the impact of special items.

On valuation measures, Apollo Education Group Inc. Cl A shares, which currently have an average 3-month trading volume of 878K shares, trade at a trailing-12 P/E of 21.55, a forward P/E of 16.37 and a P/E to growth ratio of 14.70. The median Wall Street price target on the name is $30.00 with a high target of $35.00. Currently ticker boasts 3 ‘Buy’ endorsements, compared to 8 ’Holds’ and no ‘Sell’.

Profitability-wise, APOL has a t-12 profit and operating margin of 4.98% and 11.69%, respectively. The $3.03 billion market cap company reported $566 million in cash in its most recent quarter.

APOL currently prints a one year loss of about 16% and a year-to-date loss of around 18%.

The chart below shows where the equity has traded over the last 52 weeks.

Apollo Education Group Inc. provides private education services. The company was founded in 1973 and is headquartered in Phoenix, Arizona.

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