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What: Shares of Apollo Group
So what: Despite a 42% drop in new student enrollments, Apollo's adjusted earnings for the quarter of $1.61 per share managed to top the average analyst estimate of $1.35 per share. The entire for-profit college sector was slaughtered yesterday on Strayer's
Now what: I wouldn't get overly excited about Apollo's earnings beat. Stricter enrollment rules and negative press continued to weigh heavily on Apollo's student sign-ups, and with the sector facing even more regulatory hurdles in the coming months, things could get a lot more challenging. Even Apollo co-CEO Greg Cappelli noted that it was "a volatile time within the education sector," so most investors are simply better off on the sidelines.
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