Tuesday, October 16, 2012
For-profit education company Apollo Group Inc. says its net income fell 60 percent in its fiscal fourth quarter, hurt by a sharp drop in enrollment at the University of Phoenix and higher costs.
The company also announced Tuesday that it is closing 115 locations due to shrinking enrollment and higher interest by students in taking courses online.
Apollo reported net income of $75.4 million, or 66 cents per share, for the three months ended Aug. 31. That compares with net income of $188.6 million, or $1.37 per share, a year earlier.
Excluding special items, Apollo's earnings amounted to 52 cents per share.
Revenue fell 11 percent to $996.5 million from $1.12 billion.
Analysts polled by FactSet expected adjusted earnings of 50 cents per share on $1.01 billion in revenue.