Back to top

Image: Bigstock

American Public (APEI) to Post Q2 Earnings: What's in Store?

Read MoreHide Full Article

American Public Education, Inc. (APEI - Free Report) is slated to release second-quarter 2022 results on Aug 9, after market close.

In the last reported quarter, the company’s earnings and revenues missed the Zacks Consensus Estimate by 36.8% and 1.5%, respectively. On a year-over-year basis, revenues increased 75%, but earnings declined significantly due to increased costs and expenses.

Trend in Estimate Revision

The Zacks Consensus Estimate for the to-be-reported quarter’s earnings has been unchanged at 6 cents per share over the past 60 days. The estimated figure indicates a 100% increase from the year-ago quarter’s earnings of 3 cents per share. Also, the consensus mark for revenues is at $152.13 million, suggesting 95% year-over-year growth.

Factors to Note

Higher enrollment at its Hondros College of Nursing segment (HCN) is likely to have boosted the company’s second-quarter revenues. HCN's focus on student support services, impressive reputation in the communities, and ability to deliver good educational outcomes to meet the needs of students and the hospital system have been benefiting the company.

Backed by ongoing demand for nursing education, successful marketing efforts, and the execution of enrollment strategies, the company expects total revenues to increase 92-97% year over year. HCN’s total student enrollment is expected to increase by 3% from the prior year’s tally to 2,400 In the second quarter.

Yet, its APUS segment has been suffering from poor Army's new tuition assistance portal experience. Also, the timing of registrations and lower revenue per net course registrations are adding to the woes. Total net course registrations at APUS are likely to fall 2-1% year over year to 80,900-83,400. RU’s student enrollment is likely to fall 6% from the year-ago quarter’s figure to 15,900 (due to a 2% decline in Nursing and a 10% decline in Non-Nursing).

American Public has been experiencing increased costs, which is ultimately denting profitability. The inclusion of the RU segment, increase in professional fees in the APUS segment, employee compensation costs, bad debt expense, instructional materials costs, and advertising costs in the HCN segment is likely to have dented profitability in the second quarter. APEI expects earnings within break-even at seven cents per share, indicating a decline of 100-133% year over year.

That said, the company anticipates adjusted EBITDA within $14.3-$16.2 million, suggesting a rise of 44-63% year over year.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for American Public this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: American Public currently carries a Zacks Rank #3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Look at Some Recent Consumer Discretionary Releases

Mohawk Industries, Inc. (MHK - Free Report) reported mixed results for second-quarter 2022, with earnings surpassing the Zacks Consensus Estimate but net sales missing the same. On a year-over-year basis, net sales grew buoyed by higher pricing, enhanced product mix and improvements in commercial and acquisitions.

However, MHK’s earnings fell from a year ago due to material, energy and transportation inflation.

Strategic Education, Inc. or SEI (STRA - Free Report) reported second-quarter 2022. Quarterly earnings and revenues missed their respective Zacks Consensus Estimate and declined on a year-over-year basis.

The downside was caused by lower contributions from all three segments of STRA.

Royal Caribbean Cruises Ltd. (RCL - Free Report) reported solid second-quarter 2022 results, with earnings and revenues beating the Zacks Consensus Estimate and rising year over year.

RCL is expected to generate 65.1% earnings growth in 2022.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Published in