University of Phoenix enrollment drops 42%

Student enrollment at University of Phoenix parent Apollo Group nose-dived 42 percent in the three months that ended Dec. 30, and on Monday investors learned that company executives believe it is only the beginning, The Arizona republic reports. The Phoenix-based company expects those figures to fall as much as another 40 percent next quarter, and Apollo could continue to see steep declines for the rest of the year, executives said. Overall enrollment fell 3.8 percent, compared with a year earlier, to 438,100. Profits also dipped, but the company managed to beat analysts’ estimates for revenue and earnings per share, in part by instituting “selective” tuition increases. In October, Apollo warned investors that enrollment could fall more than 40 percent during the first quarter.

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