For-profit education company Apollo Group (NASDAQ:APOL) late Monday reported lower third-quarter profits on lower enrollment, but the results still exceeded market expectations.
Apollo Group, which operates the University of Phoenix, said for the quarter ended May 31, net profit was $134 million, or $1.13 per share, down from $212.4 million, or $1.51 per share a year ago. Revenue fell to $1.13 billion from $1.24 billion.
Analysts surveyed by FactSet Research had been looking for a third-quarter profit of 97 cents on revenue of $1.12 billion.
"We are focused on delivering the best possible experience and service to support working adults, to address workforce needs, and to strengthen the connection to careers for our students," said Apollo Group co-CEO Chas Edelstein.
"Evaluating key touch points, we are creating programs and support services that allow our students to focus on learning, experiencing achievements along the way to help inspire them and enhance their long-term outcomes."
The company said total enrollment dipped to 346,300 versus 398,400 last year.
Apollo, like many for-profit educators, has been dealing with the impact of new federal enrollment regulations.
Enrollment soared for many of these companies early in the recession, as the weak economy and high unemployment made their programs more appealing to job-seekers. But stricter government regulations enacted last summer prompted the companies to raise admissions standards, which has cut enrollments and profitability.
The company, however, has begun to manage some of these issues more effectively in recent quarters. It cut its marketing spending, launched a career-services program and invested in other programs to help improve the performance of its students, which could pay off in the long run if it is able to bring enrollment up.
Looking ahead, Apollo said it expects revenue of $4.2 billion to $4.3 billion for the full fiscal year; analysts are expecting $4.28 billion.