October 17, 2021

As expected Apol exceeds expectations, yet analysts still fear

For its fiscal second quarter, Apollo Group reported earnings of $0.77 per share, $0.12 better than the First Call consensus of $0.65.

Revenues rose 26.3% year-over-year to $876.1 million, topping the consensus estimate of $865.5 million.

Contributing to the growth was a 20.4% year-over-year increase in degreed enrollment to 397,700.

With all of this good news the stock is down $12.00

 Why?

  • Fear of increasing bad Debt
  • Fear of increasing marketing costs…even though TV costs are down and online leads have remained consistant
  • Fear that growth at this scale cannot continue at this pace
  • Fear of management changes…even though that is to be expected with a new leader.

Since bad debt has increased for UoP, the market also pounded ESI as when it comes to bad debt fears, they are the one most feared followed by CECO & COCO.

How bad do you think the bad debt will be?

Comments

  1. dumb, di dumb, dumb…. thats what I say about those anaalysts, apol is doing great, they are the biggest, and growing just fine…watch them continue to grow, who can catch them…it aint going to happen..$100 again baby

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