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Showing posts with label Education Management. Show all posts
Showing posts with label Education Management. Show all posts
Thursday, June 28, 2012
Investopedia: Apollo Still Searching Out The New Normal
One of the most dangerous investment plays for value-oriented investors
is an apparently cheap stock of a company that is seeing a serious and
significant reordering of its business and industry. That covers
for-profit education company Apollo Group (Nasdaq:APOL)
rather well, and I admit that I got sucked into what looked like a low
valuation combined with a quality company built to last. The stock is
down almost one-third since my late January optimism, and though the
long-term outlook for the company is still solid, it's clear that this
story is going to take time to work.
Please read the full article here:
http://stocks.investopedia.
Please read the full article here:
http://stocks.investopedia.
Monday, July 4, 2011
Investopedia: Apollo Off Key For Growth Investors
These are challenging days for the for-profit education market. Although a tough job market may suggest a larger pool of potential students, education companies are up against a formidable set of challenges. Education has gotten increasingly expensive (pricing some out of the market), the job outlook may lead people to think further education is pointless, and new government regulations have these companies reconsidering and adjusting their admissions and promotions policies.
With that backdrop, it is not altogether surprising that Apollo Group (Nasdaq:APOL) is struggling. While the long-term view on this company is still quite positive, the institutional investors that move markets these days are not famous for patience and the near-term outlook is troublesome.
A Tough Third Quarter
Apollo did reasonably well, relative to expectations, but the company's absolute fiscal third quarter performance was not very strong. Revenue fell close to 8% this quarter, as starts dropped about 40% and enrollment fell about 16%. Apollo saw the biggest drops in its associate programs, but there really wasn't an area of strength. While these declines were already in the analysts' models (and caused at least in part by new orientation and admissions models), it is still a major interruption in the company's growth trajectory.
To read the full piece, please follow the link:
http://stocks.investopedia.
With that backdrop, it is not altogether surprising that Apollo Group (Nasdaq:APOL) is struggling. While the long-term view on this company is still quite positive, the institutional investors that move markets these days are not famous for patience and the near-term outlook is troublesome.
A Tough Third Quarter
Apollo did reasonably well, relative to expectations, but the company's absolute fiscal third quarter performance was not very strong. Revenue fell close to 8% this quarter, as starts dropped about 40% and enrollment fell about 16%. Apollo saw the biggest drops in its associate programs, but there really wasn't an area of strength. While these declines were already in the analysts' models (and caused at least in part by new orientation and admissions models), it is still a major interruption in the company's growth trajectory.
To read the full piece, please follow the link:
http://stocks.investopedia.
Monday, June 6, 2011
Investopedia: After Sound And Fury, For-Profit Educators Get A Break
Investors in for-profit education companies like Apollo Group (Nasdaq:APOL), Strayer (Nasdaq:STRA) and DeVry (NYSE:DV) may wonder if Washington, D.C. is more like Oz these days. There was a great deal of roaring and rumbling from the Department of Education over the past year or so about the shortfalls in the for-profit education market (high default rates, excessive tuition and debt relative to earnings prospects, etc.) and a lot of threats that the sheriffs were coming to clean up the town.
As it turns out, all they really brought with them were water guns.
New Gainful Employments Regulations Look Soft
The Department of Education finally realized its new "gainful employment" (GE) regulations for the for-profit education industry during the first week of June. Going through the 436-page document (and yes, it was as exciting to read as it probably sounds), it is pretty clear that, for all of the sound, fury and posturing from the federal government about cracking down on these companies, very little is likely to actually change.
To read the full article, please follow the link:
http://stocks.investopedia.
As it turns out, all they really brought with them were water guns.
New Gainful Employments Regulations Look Soft
The Department of Education finally realized its new "gainful employment" (GE) regulations for the for-profit education industry during the first week of June. Going through the 436-page document (and yes, it was as exciting to read as it probably sounds), it is pretty clear that, for all of the sound, fury and posturing from the federal government about cracking down on these companies, very little is likely to actually change.
To read the full article, please follow the link:
http://stocks.investopedia.
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