Apollo Education Group Inc (NASDAQ:APOL) Falls Sharply After The Company Cuts Revenue Forecast
Apollo Education Group Inc (NASDAQ:APOL), which owns the University of Phoenix, a for-profit organization, witnessed their stock fall sharply on Wednesday. The tumble was triggered by light guidance the company issued. The continued drop in student enrollment was also seen as a larger issue, triggering the downslide.
Apollo Education reported that there was a significant drop in the number of new students registering in the latest quarter, to 28,300. The 13% drop in registration was despite revamping of online services. The sign-up losses have been significant and Apollo Education Group Inc. has been reworking all strategies to achieve better success.
Apollo Education Group Inc (NASDAQ:APOL)’s stock dropped by 28% on Wednesday, closing at $20.04. This is the largest decline the company has seen since it went public in 1994. The stock was down 41% in comparison to last year’s milestones.
Apollo woes have been overflowing. Students have been experiencing software compatibility issues in online classroom routines. There is disruption in the sessions, leading to students dropping their classes, the company noted on Wednesday. Chief Executive Officer Gregory Cappelli, reported that the company had cut back on marketing spending, allowing competitors to gain an edge. In contrast, marketing was a key focus of many of the competitors, with advertising spending beefed up.
Cappelli added that, in this quarter, the company decided to make changes to the marketing type and spending. Apollo Education Group Inc has also reworked the strategies with its contracts as well, the CEO added.
The company proposed to tackle the main issues on hand, as in, fixing the technology platform, Cappelli proposed. He identified the issue of ‘technology disruption’ had affected its online community of learners. It had also affected the rates of retention of students at Apollo Education Group Inc, he noted.
Latest posts by Lisa Ray (see all)
- Lawsuit Over Takeover Battle Settled By Pershing And Allergan, Inc. (NYSE:AGN) - April 10, 2015 05:31 AM PST
- Walgreens Boots Alliance Inc (NASDAQ:WBA) To Shut Down 200 Stores In US - April 10, 2015 05:26 AM PST
- Amazon.com, Inc (NASDAQ:AMZN) Suing Websites For Fake Reviews - April 10, 2015 05:24 AM PST