It would be hard to find a large American company doing as well at Apollo (NASDAQ: APOL), the online education company best known for its University of Phoenix division, the biggest business of its kind in the U.S. The firm's ads are everywhere.
In the last quarter, Apollo made $307 million in operating income on revenue of $971 million -- an amazing margin. Both numbers were up sharply from the same period in the previous year.
Apollo has a business that may actually improve during a recession. People who lose their jobs or want to improve skills to keep their jobs look for more education, an additional degree. Apollo's businesses allow workers to do that without spending their entire day in class.The company has 384,000 people working toward degrees and gets a yield of between $2,000 and $3,000 for each one.
Apollo shares trade at $76. Their 52-week high is $90. If the company posts a strong first quarter, the stock will move up sharply. How many firms can say that their revenue will grow fast in 2009?
Almost none.
Douglas A. McIntyre is an editor at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
3-16-2009 @ 7:28AM
Educational college said...
Online education is a very valuable source. University Of Phoenix & Apollo are act as brand names known to every one. Nice article.
http://find.com/education/college
3-16-2009 @ 7:32AM
Educational College said...
Nice article with very valuable information. Online is really a major key issue to overcome the recession.
EDUCATIONAL COLLEGE