American Public Education, Inc.

Company Description

American Public offers online education targeted toward the military and public service communities. Over 25,000 part-time students in 130 countries are offered 57 different degree programs in addition to 48 certificate programs.

Net Income Up 53%

On May 7 APEI announced first-quarter results that included a 41% increase in course registrations, up to more than 46,500 including 10,500 new students. As a result, revenues grew 43% to $33.2 million, up from $23.2 million.

Net income is skyrocketing and was up 53% on a year-over-year basis, to $5.2 million. Earnings per share were 28 cents, 3 cents higher than the consensus estimate.

Earnings to Double

Earnings estimates have been slowly climbing over the past 2 months. The consensus for this year yes not $1.24, up 4 cents. Estimates for 2010 are averaging $1.73, up 5 cents over the same period.

While the forecasts are rapidly climbing, analysts are still expecting excellent growth rates. The projected EPS growth rates for 2009 and 2010 are 93% and 40%, respectively.

Great Financials

APEI is absolutely crushing its peers when it comes to financials. The company is generating more than a 15% profit margin, while the average is in the red. APEI has a return on equity of more than 35%, far superior to the 2.4% its peers' average. Currently the company is carrying a PEG ratio of just 0.8.

The Chart

Shares of APEI tend to treat a level near $36 as both a level of support and resistance, depending on which side the stock is on. Take a look at the chart below.