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One of the wholly-owned subsidiaries of Apollo Group, Inc. (APOL - Analyst Report), Carnegie Learning, Inc., received a $1.4 million contract from Advanced Distributed Learning (ADL) to implement a two- year research program called The Hyper-Personalized Intelligent Tutors project.

The Hyper-Personalized Intelligent Tutors project will research how cognitive and non-cognitive factors such as interest-level, mood, and persistence impact the learning process. The research findings are expected to help in the development of training materials for military or other educational institutions. The project will also offer an opportunity to improve Apollo Group’s Cognitive Tutor software and other undergraduate math courses.

This project is one of the many other research programs of Carnegie Learning with a third party organization. Education companies like Apollo and Capella Education Company (CPLA - Analyst Report) have been witnessing volatile enrollment growth for the past few quarters due to overall economic conditions. This research program will help to improve effectiveness of the company’s programs, thereby improving its enrollment.

On Mar 25, 2013, Apollo Group reported adjusted earnings (excluding special items) of 34 cents per share in the second quarter of fiscal 2013, surpassing the Zacks Consensus Estimate by 88.9%. However, lower revenues and higher marketing and advertising expenses resulted in a 40.4% decline from the prior-year earnings of 57 cents per share.

Apollo Group’s net revenue of $834.4 million in the second quarter of fiscal 2013 surpassed the Zacks Consensus Estimate of $821 million by 1.6%. Revenues, however, declined 13.3% from the prior-year quarter due to decline in enrollment at the University of Phoenix.

Apollo Group carries a Zacks Rank #3 (Hold).   

Education stocks such as DeVry Inc. (DV - Analyst Report) and Xueda Education Group are currently performing well and are worth considering. Xueda Education Group carries a Zacks Rank #1 (Strong Buy), whereas DeVry holds a Zacks Rank #2 (Buy). 

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