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Apollo Group Beats Up on Analysts Yet Again

Wednesday - 1/9/2013, 9:49am  ET

Apollo Group reported earnings on Jan. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Nov. 30 (Q1), Apollo Group beat expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share increased.

Gross margins shrank, operating margins shrank, net margins were steady.

Revenue details
Apollo Group booked revenue of $1.06 billion. The 15 analysts polled by S&P Capital IQ wanted to see revenue of $1.03 billion on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $1.18 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.22. The 18 earnings estimates compiled by S&P Capital IQ anticipated $0.90 per share. GAAP EPS of $1.18 for Q1 were 3.5% higher than the prior-year quarter's $1.14 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 59.0%, 220 basis points worse than the prior-year quarter. Operating margin was 22.6%, 170 basis points worse than the prior-year quarter. Net margin was 12.7%, about the same as the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $846.5 million. On the bottom line, the average EPS estimate is $0.30.

Next year's average estimate for revenue is $3.77 billion. The average EPS estimate is $2.71.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 795 members out of 949 rating the stock outperform, and 154 members rating it underperform. Among 244 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 192 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 hold, with an average price target of $30.31.

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This article was originally published as Apollo Group Beats Up on Analysts Yet Againon Fool.com

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