Apollo Group Crushes Earnings Estimates
Apollo Group (NAS: APOL) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Feb. 29 (Q2), Apollo Group beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped, and GAAP earnings per share improved.
Gross margins dropped, operating margins dropped, and net margins grew.
Apollo Group booked revenue of $969.6 million. The 15 analysts polled by S&P Capital IQ expected net sales of $933.3 million on the same basis. GAAP reported sales were 7.5% lower than the prior-year quarter's $1.05 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.58. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.38 per share on the same basis. GAAP EPS were $0.51 for Q2 compared to -$0.45 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 55.7%, 410 basis points worse than the prior-year quarter. Operating margin was 12.6%, 630 basis points worse than the prior-year quarter. Net margin was 6.6%, 1,270 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.12 billion. On the bottom line, the average EPS estimate is $0.95.
Next year's average estimate for revenue is $4.27 billion. The average EPS estimate is $3.39.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 809 members rating the stock outperform and 145 members rating it underperform. Among 256 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 204 give Apollo Group a green thumbs-up, and 52 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 $54.
- Add Apollo Group to My Watchlist.
At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.