Out of the Gate: Apollo Group rallies

NEW YORK (AP) _ Shares of Apollo Group Inc., rose Wednesday after the University of Phoenix owner posted adjusted profit and sales that topped Wall Street expectations for the fiscal third quarter.

Shares rose $111.04, or 23.9 percent, to $57.30 early in the session.

Total degree enrollment rose 11 percent during the quarter to 345,300 students, versus a year ago. Apollo has boosted student retention with expanded academic programs, improved courses and other services.

The company recently raised tuition by 10 percent for associate degree programs and about 4 to 5 percent for bachelor and masters degree programs.

Oppenheimer&Co. analyst Scott Schneeberger, who rates the stock "Perform," said Apollo's quarter was strong across the board, with enrollment, revenue and operating margins all topping expectations.

Schneeberger said a 14 percent rise in revenue was mostly fueled by enrollment growth.

"Apollo's story appears back on track and we anticipate solid revenue growth to scale relative to continued, though relatively moderated, investment spending," Schneeberger wrote in a client note.