The worst financial crisis since the Great Depression is becoming little more than a fading memory for investors in McGraw Hill Financial Inc. and Moody’s Corp., which have risen about three times faster than the broader stock market in the last year.
For-profit colleges, bruised by years of investigations and rule-making, may face additional financial pressure from a new wave of state probes by attorneys general and the U.S. Consumer Financial Protection Bureau.
Apollo Education Group Inc., owner of the University of Phoenix and the biggest U.S. for-profit college, said first-quarter profit topped analysts’ estimates as the company lowered expenses for teaching and marketing.
Standard & Poor’s increased the risk of investing in the bond-rating service’s owner and its biggest competitor by taking away the U.S.’s AAA designation, according to Peter Appert, a Piper Jaffray & Co. analyst.
Apollo Group Inc., the largest U.S. for-profit college chain, gained the most in a year after reporting quarterly earnings and revenue that topped analysts’ estimates and raising its full-year profit forecast.