Apollo Group Beats Estimates on Top and Bottom Lines
Apollo Group (NAS: APOL) reported earnings on Jan. 5. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Nov. 30 (Q1), Apollo Group beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped, and earnings per share dropped significantly.
Margins shrank across the board.
Apollo Group logged revenue of $1.2 billion. The 16 analysts polled by S&P Capital IQ wanted to see revenue of $1.2 billion. Sales were 11% lower than the prior-year quarter's $1.3 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.28. The 18 earnings estimates compiled by S&P Capital IQ averaged $1.17 per share on the same basis. GAAP EPS of $1.14 for Q1 were 29% lower than the prior-year quarter's $1.61 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 61.2%, 440 basis points worse than the prior-year quarter. Operating margin was 24.3%, 670 basis points worse than the prior-year quarter. Net margin was 12.7%, 500 basis points worse than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $947 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $4.3 billion. The average EPS estimate is $3.44.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 812 members out of 959 rating the stock outperform, and 147 members rating it underperform. Among 280 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 223 give Apollo Group a green thumbs-up, and 57 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 $54.77.
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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. 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.
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