UPDATE: Apollo Education Posts Upbeat Q1 Profit, Revenue Misses View

Shares of

dropped more than 5% in pre-market trading after the company posted downbeat quarterly revenue and lowered its 2015 outlook. However, the company reported better-than-expected earnings for the first quarter. The Phoenix, Arizona-based company reported a quarterly profit of $33.8 million, or $0.31 per share, versus a year-ago profit of $98.9 million, or $0.87 per share. Excluding certain items, the company's earnings fell to $0.44 per share from $1.05 per share. Its revenue declined 15% to $719 million. However, analysts were expecting earnings of $0.42 per share on revenue of $728.01 million. Operating income declined to $60.5 million from $170.4 million. First quarter University of Phoenix New Degreed Enrollment slipped 5% to 39,600, while Degreed Enrollment fell 13.5% to 227,400. As of November 30, 2014, Apollo Education had unrestricted cash and cash equivalents and short-term marketable securities of $790.7 million, versus $1.4 billion as of August 31, 2014. Greg Cappelli, Chief Executive Officer, Apollo Education Group said, “Our strategy is designed to provide an outstanding student experience through innovative and engaging curriculum delivered with a focus on meeting the needs of today's busy working learners. We also are dedicated to helping employers identify, recruit and develop a more skilled workforce globally.” For the current quarter, Apollo Education projects revenue of $580 million to $595 million, versus analysts' estimates of $595 million to $625 million. For the full year, Apollo now projects revenue of $2.74 billion to $2.8 billion, versus its earlier forecast of $2.8 billion to $2.85 billion. Apollo Education shares tumbled 5.84% to $30.00 in pre-market trading.