Apollo Education shares crashCraig Dalton (Author) Published Date : Mar 26, 2015 09:54 ET
Back on a second quarter loss reported by the Company, the shares of Apollo Education nosedived by 28% making investors worried that regulations and competition could throw up more challenges for this phoenix firm.
Apollo Education Group, the parent body of University of Phoenix system slumped into loss with disappointing quarterly results chopping off 28% from the price of its stocks.
On Wednesday, the adult education giant said it lost about 31 cents for every share or $33.6 million over the quarter ending February 28 reversing a profit of 13 cents per share or $14.6 million during the same period in the previous year. Consequents to fewer students enrolling, quarterly revenue also slumped from g3 million to $579.
The company is one of the largest employers in the state and is facing stiff competition from other education companies and universities, in addition to tougher regulations.
Analysts were expecting the loss to be pegged at 16 cents to a share and the revenue projections too went haywires.
The company reported $1.4 billion drop in current assets compared to $2 billion during the same period in the previous year. Key enrollment measures too suffered declines in double digits. There was also a sharp fall in liabilities.
The quarterly report coming ahead of the stock marketing opening saw sharp selling activity in the counter driving prices down by $7.95 to a share or 28.4%. About 16 million shares were traded and the closing price was at $20.94. Factoring in the current slump, the company s shares have erased 41% of its value in 2015 alone.
The CEO of Apollo, Greg Cappelli acknowledged that the company is facing challenges and that he believed the management to have a healthy long term strategy to tide over the difficulties now experienced.
In a time of unprecedented change in the higher-education industry, we are focused on enhancing outcomes through a deep understanding of student and employer needs, Cappelli said in a statement.
Apollo Education shares crash