Apollo Education Group, Inc. ($APOL) Stock|Stock Shoots Up On Possible Sale Despite Missing On Earnings


Apollo Education Group, Inc. (NASDAQ: APOL)



Apollo Education Group, Inc. (APOL), an education services company yesterday announced their first quarter fiscal year 2016 financial results. Apollo’s earning per share was $0.29 and they revenues were $586 million. This down from the same quarter of last year of $0.46 per shares and revenues of $714.5 million. The numbers were also down from consensus estimates of $0.31 per share and revenues of $610.42 million. Even though Apollo has missed its earnings expectations it has gapped up on speculation of a potential sale of the company. “The board is currently in discussions that could potentially lead to a change of control of the company,” the private education provider said in a statement.  (The Street).


Apollo Education Group, Inc. CEO’s Comments

“Apollo is taking the necessary steps to enhance long-term shareholder value through a series of strategic actions which include transforming University of Phoenix into a higher retaining, more trusted provider of career relevant higher education, continued expansion of our international network, and a commitment to efficiency,” said Greg Cappelli, Chief Executive Officer, Apollo Education Group. “The University of Phoenix team is implementing major components of its transformational plan as quickly as possible, and although this is having a near-term negative impact on revenue, we believe speed of execution will help the University return to stability more quickly. Apollo Global continues to expand and grow its network through a combination of high quality acquisitions and organic growth and is on-target for a record year. Finally, we have committed to incremental cost reductions in order to preserve our operating margin during this transformational period.”  Business Wire


APOL Technical Analysis

APOL Chart

APOL gapped up in price yesterday to $7.08, up from the prior day’s close of $6.59, which is a 7% increase in price. Taking a look at the daily chart, we can see the last time APOL traded above this price level was on January 6th when it traded at $7.19. Taking a closer look at the daily chart we can see that APOL has been on an overall decline dating back to March 24th when it traded at $27.99. More recently Since October 22nd APOL has been in a trading range in between $6.50 and $8.30. APOL has a float of 94.08 million shares and is trading below the normal daily trading volume. APOL did reach pre market highs of $7.42, but gave back $0.34 at the open, or equivalent to 5%. For trading purposes, my entry point would have been $7.15 looking for a run through $7.50. My stop loss would have been $7.00, fearing anything below that and the stock would start to fill in the gap up.


Company Profile

Apollo Education Group, Inc. provides private education services in the United States and internationally. The company offers online and on-campus undergraduate, graduate, certificate, and non-degree educational programs and services to working learners. It operates through University of Phoenix, Apollo Global, and Other segments. The University of Phoenix segment provides undergraduate and graduate degrees in the areas of business, education, and nursing; and a range of non-degree education programs for lifelong learners and students. The Apollo Global segment offers accounting and law programs; recognized and government approved non-degree certificates, diplomas, and other qualifications in a range of disciplines and industries, including health and wellness, business management and services, and community services; and graduate and undergraduate degrees, high school, and executive education in various program areas and disciplines, including medical, dental, and communications. It also provides postsecondary education services through distance education and at campuses; undergraduate and graduate degrees primarily in the areas of business, education, and technology; and degree and non-degree programs focused on arts and technology. The Other segment offers non-degree information technology bootcamp programs, as well as skills training services; and online financial services education programs, including graduate degrees in certificate programs, financial industry regulatory authority securities license training, and continuing education courses. It also provides undergraduate and graduate degrees in business, information technology, and behavioral science areas; and various programs for employers. The company was formerly known as Apollo Group, Inc. and changed its name to Apollo Education Group, Inc. in November 2013. Apollo Education Group, Inc. was founded in 1973 and is headquartered in Phoenix, Arizona.  Yahoo Finance