Apollo Education Q3 Profit Down; But Results Top Estimates - Quick Facts

(RTTNews) - Apollo Education Group, Inc. (APOL) reported that its net income attributable to the company for the third quarter 2014 declined to $66.03 million or $0.59 per share, from $79.95 million or $0.71 per share, in the third quarter 2013.

Results for the third quarter 2014 included the certain special items: $16.2 million of contingent consideration charges and acquisition costs, $14.9 million of restructuring and other charges, a $4.1 million charge associated with legal matters, and an $11.2 million gain related to foreign indirect taxes following resolution with a taxing authority, which is included in the Instructional and Student Advisory line item.

Excluding these special items, net income attributable to the company for the third quarter was $84.9 million or $0.76 per share, down from $119.1 million or $1.05 per share in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.66 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly net revenue dropped to $799.9 million, from $946.8 million last year. Wall Street expected revenues of $794.43 million.

As University of Phoenix continued to realign its operations during the third quarter 2014, University of Phoenix New Degreed Enrollment decreased 12.9% to 33,900 and Degreed Enrollment decreased 15.9% to 241,900, compared to the same period a year ago.

Looking ahead to the fiscal 2014, the company now expects operating income, excluding the impact of special item, to be in the range of $420 million to $435 million, net revenue of $3.04 billion to $3.06 billion. Analysts project annual net revenue of $3.05 billion. The company said in April that it expected revenue of $3 billion to $3.1 billion for fiscal 2014.