Dropping Enrollment Numbers Weigh on Apollo Group and DeVry Profits
February 03 2012 - 8:20AM
Marketwired
For profit education companies reported mixed results this earnings
season. Due in part to their reputation for being unable to place
alumni into the workforce, most for-profit schools have been
posting a decline in student enrollment in recent quarters.
For-profit educators are expected to face continued decline in
student numbers as they tighten admission standards to comply with
new education rules. Five Star Equities examines the outlook for
companies in the Education & Training Services Industry and
provides equity research on Apollo Group, Inc. (NASDAQ: APOL) and
DeVry, Inc. (NYSE: DV). Access to the full company reports can be
found at:
www.fivestarequities.com/APOL
www.fivestarequities.com/DV
A House committee approved a bill recently that would create an
independent commission to increase oversight of the for-profit
college industry amid allegations that some are taking advantage of
students. House Bill 308 calls for the commission to replace the
11-member panel (that includes six members from for-profit
schools), known as The State Board for Proprietary Education. Bill
308 would also strengthen the complaint process for students and
establish a student protection fund.
Last year, the U.S. Department of Education tightened financial
aid standards for for-profit schools in an attempt to improve
graduation rates.
Five Star Equities releases regular market updates on the
Education & Training Services industry so investors can stay
ahead of the crowd and make the best investment decisions to
maximize their returns. Take a few minutes to register with us free
at www.fivestarequities.com and get exclusive access to our
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Shares of DeVry, Inc. took a nosedive last week after the
company announced that its net income plunged by 90 percent during
the second quarter. DeVry's undergraduate enrollment dropped 13
percent and new enrollees fell by 25 percent.
For the three months ended Nov. 30, Apollo Group's net income
sank by 37 percent in its fiscal first quarter as enrollment at its
flagship University of Phoenix decreased. Degreed enrollment for
the quarter was 373,100, down 15 percent from 438,100 a year
ago.
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