Apollo Group Dips After Earnings, CEO News

For-profit education company Apollo Group (APOL) fell 0.7% after hours following a better than expected fiscal first quarter earnings report and an announcement about the timing of co-CEO Charles Edelstein’s retirement. The stock had initially risen after the results were announced.

Apollo posted $1.28 of EPS, 11 cents better than analysts’ expectations. Reveneue fell 11.1% year over year, and enrollment at the University of Phoenix fell 14.8%. The enrollment dropoff was “primarily the result of the operational changes and initiatives it implemented to more effectively support students and improve educational outcomes, as well as the broader competitive environment.”

Apollo also reaffirmed its 2012 guidance.

Co-CEO Charles Edelstein will retire in August, the company announced, leaving co-CEO Gregory Cappelli to run the company.

BARRON'S

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