PHOENIX (AP) — For-profit education company Apollo Education Group Inc. said Wednesday that its third-quarter net income fell almost 18 percent, weighed down by charges and acquisition costs.
But its adjusted profit and revenue beat analysts' estimates. Shares climbed before the market open.
For the three months ended May 31, the parent of the University of Phoenix earned $66 million, or 59 cents per share. A year earlier the Phoenix-based company earned $80 million, or 71 cents per share.
Removing restructuring charges, acquisition costs and other items, earnings were 76 cents per share.
Analysts, on average, expected earnings of 66 cents per share, according to a FactSet poll.
Apollo Education's stock added 72 cents, or 2.5 percent, to $30 in premarket trading about 90 minutes before the opening bell.
Revenue dropped 16 percent to $799.9 million from $946.8 million, but topped Wall Street's forecast of $793. 4 million. Apollo Education noted that there were enrollment declines at University of Phoenix.
The for-profit education industry experienced a surge when the recession first hit. Since then enrollment has been hurt by factors such as weaker student demand, increased criticism of the schools and new federal regulations.
For fiscal 2014, Apollo Education foresees revenue between $3.04 billion and $3.06 billion. Analysts predict $3.05 billion.
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