Apollo Group Inc. (APOL) reported fourth quarter 2010 earnings of $1.31 per share from continuing operations beating Zacks Consensus Estimates of $1.29 per share. The EPS decreased 24.7% sequentially, but increased 23.6% from the prior year quarter.
Apollo reported net revenue of $1259.4 million, marginally beating the Zacks Consensus Revenue estimate of $1258 million. Revenue increased 17.3% from the year-ago quarter. The revenue gains reflected contribution from the acquisition of BPP Holdings and a 6.3% growth in University of Phoenix total Degreed Enrollment to 470,800.
Apollo repurchased approximately 2 million of its own shares for a total expenditure of $100 million. As of August 31, 2010, another $561 million worth of buyback authorization remains outstanding under company’s current share repurchase authorization.
Estimates for the quarter had generally held up in the run-up to the earnings release. The full-year estimate for next year has been trending down in recent days, with two negative revisions in the last seven days alone. The current Zacks Consensus Estimate for 2011 of $5.60 is down from $5.62 seven days ago. The full-year Zacks Consensus Estimate for 2010 remains unchanged at $5.28.
Apollo has healthy track record of producing positive earnings surprises. The average surprise in the preceding 4 quarters is a positive 4.8%, and another positive surprise was therefore expected.
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