Apollo Education's Stock Trades Sharply Lower After Sales Outlook Disappoints

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Shares of Apollo Education were indicated sharply lower in premarket trade Wednesday, after the for-profit education company reported narrower-than-expected fiscal second-quarter losses, but provided a disappointing sales outlook for the rest of the year. For the quarter ended Feb. 28, the company swung to a net loss $33.6 million, or 31 cents a share, from a profit of $14.6 million, or 15 cents a share, in the year-earlier period. Excluding non-recurring items, the adjusted per-share loss was 10 cents, compared with the FactSet consensus loss estimate of 16 cents. Revenue fell to $578.6 million from $672.8 million, missing the FactSet consensus of $585 million. The company expects third-quarter revenue of $690 million to $705 million and full-year revenue of $2.63 billion to $2.68 billion, compared with the FactSet consensus of $741 million and $2.73 billion, respectively. The stock traded down 11% ahead of the open on light volume. It has lost 18% year to date, while the S&P 500 has gained 1.6%.

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