APOL

Apollo’s 1Q 2014 Results Show Continued Enrollment Declines, Weakening Cash Flow

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Industry proxy for the ‘Education (For-Profit)’ group, Apollo (APOL) reported weak fiscal first-quarter 2014 results Wednesday. Net revenue declined to $856 million to $1.1 billion in the first fiscal quarter of last year. University of Phoenix Degreed Enrollment fell nearly 18% from the same period a year ago, while New Degreed Enrollment tumbled nearly 23%.   Image Source: Apollo Operating income dropped significantly ($169 million, was $231 million), and income from continuing operations, excluding special items, came in at $1.04 per share compared to $1.22 per share in last year’s quarter. The for-profit education provider’s cash balance shrunk to $917 million from $1.52 billion as it paid down debt. Net cash from operations fell to $129 million in the three … Read more

With M&A Popping, We Think More Deals Lie Ahead

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Monday morning, Barnes and Noble’s (BKS) Chairman Leonard Riggio announced that he will finance a bid to take the company’s retail operations private. This comes after the announcement of several other major deals, including the OfficeMax/Office Depot Merger, Berkshire (BRK.A) and 3G Capital’s acquisition of Heinz (HNZ), and Michael Dell’s bid for Dell (click ticker for report: ). Let’s take a look at some potential targets. Apollo Group Results in the for-profit education space have experienced significant downward pressure during the past few years. Apollo Group (click ticker for report: ), owner of the University of Phoenix, has seen its share price cut by 64% during the past year, after being a cash-generating darling just a few years ago. The … Read more

Nelson: The 16 Most Important Steps To Understand The Stock Market

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A previous version of this article appeared on our website July 21, 2013. Refreshed and updated throughout, as of July 2018. By Brian Nelson, CFA After earning my MBA at the University of Chicago Booth School of Business and training stock and credit analysts from large organizations over the past decade or so, I have heard just about every question (though I admit I am still surprised by many things and remain a very humble student of the markets). I’ve also spent years perfecting the discounted cash flow process for large research organizations such as Morningstar and studied under one of the most famed aggressive growth investors of all time, Richard Driehaus. My knowledge runs the gamut from value through … Read more

For-Profit Education Stocks Keep Falling: We’re Still Not Touching the Industry

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Key Takeaways: ·        Active enrollment levels continue to fall across the industry. ·        Some universities are at risk of losing accreditation. ·        The outlook for government-funded education isn’t great. ·        Evidence is mounting that a for-profit education may not be worth the cost. ·        Grand Canyon (LOPE) and Capella (CPLA) are proving to be worth the cost, explaining a great deal of outperformance. DeVry (DV) has some nice businesses, but its core remains challenged. ·        We do not like any firm in the industry. Please refer to our Best Ideas Newsletter for our favorite investment opportunities. List of industry constituents: American Public (APEI), Apollo Group (APOL), Bridgepoint Education (BPI), Career Education (CECO), ChinaEdu Corp (CEDU), Corinthians Colleges (COCO), Capella Education … Read more

How to Think About Corporate Tax Reform

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