The 10-second takeaway
For the quarter ended Aug. 31 (Q4), Apollo Group met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins contracted across the board.
Apollo Group notched revenue of $996.5 million. The 15 analysts polled by S&P Capital IQ wanted to see a top line of $1.01 billion on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $1.12 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 $0.52. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.49 per share. GAAP EPS of $0.67 for Q4 were 51% lower than the prior-year quarter's $1.38 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 54.3%, 660 basis points worse than the prior-year quarter. Operating margin was 9.9%, 1,090 basis points worse than the prior-year quarter. Net margin was 7.6%, 920 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.03 billion. On the bottom line, the average EPS estimate is $0.92.
Next year's average estimate for revenue is $3.78 billion. The average EPS estimate is $2.63.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 808 members out of 953 rating the stock outperform, and 145 members rating it underperform. Among 236 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 182 give Apollo Group a green thumbs-up, and 54 give it a red thumbs-down.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.