Education shares drop as Apollo Group reports enrolment declines

October 14, 2010

US for-profit education stocks tumbled Thursday after Apollo Group Inc., parent company of the University of Phoenix, withdrew its 2011 outlook because of declining enrolment and increased regulatory pressure on the for-profit education industry. The company's new student enrolments fell 10% between June and August, and enrolment in the first quarter of the 2011 fiscal year may drop more than 40% over the same time last year. The company says it will be 2012 before it sees any growth in new student numbers. Apollo Group News Release | Reuters | Bloomberg BusinessWeek | Forbes