Investors pushed shares of Apollo Group Inc. sharply lower Wednesday evening after the for-profit educator pulled its yearly outlook because of regulatory concerns facing the industry.
Stock in Apollo Group (APOL42.15, -7.35, -14.85%) slid 14% to $42.54. The company, whose subsidiaries include University of Phoenix, said it was pulling its business outlook for 2011 “given the transitional state of the business, and the uncertain regulatory environment.”
Apollo Group said the combination of the implementation of its own initiatives, primarily at University of Phoenix, together “with the effect of other challenges the proprietary education industry is facing will adversely impact its operating metrics and financial results.”
The industry has been facing the possibility of new regulations that would tighten standards among financial-aid advisers and help halt predatory lending to low-income students, among other issues.