NEW YORK (AP) — Apollo Education, the parent of the University of Phoenix, said Tuesday its net income grew in the fiscal second quarter even though enrollment continued to decline.
A year ago, the company's results were weighed down by $44 million in restructuring charges and other items, and those costs decreased in the most recent quarter. New student enrollment at the University of Phoenix continued to fall, shrinking 16.5 percent to 250,300.
The Phoenix-based company said its net income rose 8 percent in the three months that ended Feb. 28. Apollo earned $14.6 million, or 13 cents per share, up from $13.5 million, or 12 cents per share, a year ago. Excluding one-time charges the company said its income totaled 28 cents per share, down from 34 cents per share a year ago. Its revenue fell 19 percent, to $679.1 million from $834.4 million.
FactSet says analysts expected Apollo to report income of 19 cents per share and $689.4 million in revenue.
Shares of the company rose 2.7 percent to $35.16 during regular trading Tuesday and lost $1.86, or 5.3 percent, to $33.30 in after-hours trading.
The for-profit education industry experienced a big boom when the recession first hit, but student demand has fallen and increased criticism of the schools, new federal regulations and the still-struggling economy have all hurt enrollment. The company closed more than 100 smaller locations in 2012, and it said in October that it would cut about 500 jobs.
Apollo Education Group Inc. still expects to report $3 billion to $3.1 billion in revenue in the current fiscal year. Analysts expect $3.06 billion, on average.
The company also said Timothy Slottow will become the new president of the University of Phoenix. The choice was made by the school's board of trustees. Slottow is currently the chief financial officer of the University of Michigan, and he will take his new position on June 20. Bill Pepicello has been president of the University of Phoenix for seven years. He announced his retirement in September.