Apollo Group (Nasdaq: APOL ) reported earnings on March 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Feb. 28 (Q2), Apollo Group beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Apollo Group reported revenue of $834.4 million. The 15 analysts polled by S&P Capital IQ hoped for sales of $822.8 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $962.7 million.
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 $0.34. The 18 earnings estimates compiled by S&P Capital IQ averaged $0.18 per share. Non-GAAP EPS of $0.34 for Q2 were 41% lower than the prior-year quarter's $0.58 per share. (The prior-year quarter included $0.02 per share in earnings from discontinued operations.) GAAP EPS of $0.12 for Q2 were 76% lower than the prior-year quarter's $0.51 per share. (The prior-year quarter included $0.02 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 54.0%, 180 basis points worse than the prior-year quarter. Operating margin was 8.1%, 430 basis points worse than the prior-year quarter. Net margin was 1.6%, 500 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $954.0 million. On the bottom line, the average EPS estimate is $0.82.
Next year's average estimate for revenue is $3.70 billion. The average EPS estimate is $2.71.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 788 members out of 941 rating the stock outperform, and 153 members rating it underperform. Among 252 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 198 give Apollo Group a green thumbs-up, and 54 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Apollo Group is hold, with an average price target of $26.50.
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