One of the wholly-owned subsidiaries of Apollo Group, Inc. , University of Phoenix, recently announced its plan to collaborate with The American Hotel & Lodging Educational Institute (EI) in order to provide more academic opportunities for hospitality professionals.
The partnership will provide EI students the opportunity to use their EI training and professional certificates and pursue advanced education. The partnership will also create a Credit Recommendation Guide (CRG), which will enable EI students to qualify for college credit while pursuing undergraduate degree at the University of Phoenix.
Education companies like Apollo and Capella Education Company (CPLA - Free Report) have been witnessing volatile enrollment growth for the past few quarters due to the current economic scenario. 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 New Oriental Education & Technology Group (EDU - Free Report) and Grand Canyon Education, Inc. (LOPE - Free Report) are currently performing well and are worth considering. New Oriental carries a Zacks Rank #1 (Strong Buy), whereas Grand Canyon Education holds a Zacks Rank #2 (Buy).