Oppenheimer Updates APOL FY12 Guidance

Oppenheimer has updated Apollo Group's APOL FY12 guidance after the F2Q11 adjusted EPS. According to Oppenheimer, "F2Q11 adj'd EPS of $0.83 exceeded our estimate/consensus of $0.69, though enrollment starts didn't provide an upside surprise at -44.9% y/y. F3Q11 y/y starts were guided consistent with F2Q11, which implies sustained pressure near-term and contributed to APOL's issuance of FY12 guidance that was below previous consensus. Though below expectations, the FY12 outlook helps tighten out-year investor expectations and appears to set the bar low for potential upside as APOL progresses from FY11 trough starts to trough enrollment in/around F2H12, and ideally regained growth thereafter." APOL has a Perform Rating and closed yesterday at $41.40.