Apollo Jumps Over 7% As Q3 Beats Estimates

Apollo Group Inc. (APOL) reported better-than-expected fiscal third-quarter results late Monday, driven by robust growth in enrollment.

Shares of this Zacks #2 Rank (”Buy”) company have jumped more than 7% so far today on heavier-than-usual volume of approximately 5.5 million, compared to the average daily volume of about 2.7 million.

The education services provider posted earnings of $1.26 per share for the quarter, topping the consensus estimate by 11.5%.

Revenue expanded 26% to $1.05 billion, ahead of Wall Street Expectations, primarily due to a 22% growth in University of Phoenix total degreed enrollment.

The consensus forecast for the fiscal year ending August 2009 has remained steady at $3.97 per share over the past 2 months. However, the strong quarterly results could lead to positive analyst revisions over the next several weeks.

Meanwhile, the company also said that it has boosted its ongoing share repurchase program to $500 million.

Apollo has already bought back 7.2 million shares under the program at a weighted average price of $61.62 per share, marking a total expenditure of $444.4 million during the third quarter.

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