Apollo Group (Nasdaq: APOL ) reported earnings on June 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended May 31 (Q3), Apollo Group beat slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Apollo Group chalked up revenue of $1.13 billion. The 16 analysts polled by S&P Capital IQ predicted a top line of $1.12 billion on the same basis. GAAP reported sales were 8.5% lower than the prior-year quarter's $1.24 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.20. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.96 per share. GAAP EPS of $1.13 for Q3 were 25% lower than the prior-year quarter's $1.51 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 58.4%, 450 basis points worse than the prior-year quarter. Operating margin was 21.0%, 720 basis points worse than the prior-year quarter. Net margin was 11.9%, 530 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.01 billion. On the bottom line, the average EPS estimate is $0.50.
Next year's average estimate for revenue is $4.29 billion. The average EPS estimate is $3.49.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 811 members out of 955 rating the stock outperform, and 145 members rating it underperform. Among 244 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 191 give Apollo Group a green thumbs-up, and 53 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Apollo Group is outperform, with an average price target of $47.93.