Apollo Education Group Inc. (NASDAQ:APOL) stocks are tumbling on news of the company’s expected losses for the second fiscal quarter. The education group, which is best known for owning University of Phoenix, has seen its stock price fall nearly 24%. Real-time statistics show that the stock is down 23.65%.
The company posted a loss of $33.6 million versus a profit of $14.6 million a year ago. Revenues have declined nearly $100 million from $672 million to $578 million. The company’s enrollment has also dropped by 15% while new degree enrollment has dropped by 13%.
Chief Executive Officer Greg Cappelli stated that the company has faced a harsh second quarter, but will continue with its long-term strategy. Investors will not be happy with the company’s third-quarter revenue projections of $690 – $705 million. This is far below analyst estimates that had revenues at $741 million.
Full-year revenue numbers have also been adjusted and will not meet the $2.74 – $2.8 billion outlook that was predicted earlier in the fiscal year. Instead, the new revenue numbers have been adjusted to $2.63 – $2.68 billion.
Apollo has also cut down on its marketing, while competitors have ramped up their marketing efforts. Major problems with the company’s online platform is a key part of the company’s retention problem and will be fixed, states Cappelli.