Weak Q2 For Apollo Group (APOL)

Apollo Group (NASDAQ: APOL) has forecasted weak Q2 results on the back of higher bad debt expense in the period. The company forecasts bad debt expenses of $73 million to $76 million, which works out to about 6.8% to 7.1% of its revenue for Q2.

"Current bad debt levels are higher than we would like; however, we are taking the necessary steps to reverse current trends," Greg Cappelli, Apollo's co-chief executive officer said in a statement. The company expects revenues to be around $1.07 billion, which is slightly below analysts’ expectations of $1.09 billion.