We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
American Public Education (APEI) Down 16.1% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for American Public Education (APEI - Free Report) . Shares have lost about 16.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is American Public Education due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
American Public Q2 Earnings & Revenues Top, Down Y/Y
American Public reported better-than-expected second-quarter 2023 results with earnings and revenues surpassing the Zacks Consensus Estimate. However, both metrics declined on a year-over-year basis.
The company’s results benefited from the solid contributions of the American Public University System (APUS) and Hondros College of Nursing segment (HCN) segments’ as well as Graduate School USA revenues included in Corporate and Other, and cost-saving initiatives.
APEI exceeded the adjusted EBITDA guidance of $4.4-$6.4 million by 38%.
Delving Deeper
The company reported an adjusted loss of 25 cents per share, narrower than the Zacks Consensus Estimate of a loss of 31 cents per share by 19.4%. In the year-ago quarter, APEI reported an adjusted loss of 6 cents per share.
Total revenues of $147.2 million topped the consensus mark of $146.2 million by 0.7% but decreased 1.6% from the year-ago period’s levels. The dismal performance of the Rasmussen University (RU) segment ailed the other segments’ tailwind.
Total costs and expenses (excluding impairment charges) increased 1.7% to $148.5 million year over year, owing to increased employee compensation costs, bad debt expenses, building rent and maintenance costs, along with technology costs, partially offset by a decrease in advertising costs. Excluding impairment charges, costs and expenses were 100.9% of total revenues in the second quarter of 2023, up from 97.6% of revenues reported in the prior-year period.
Adjusted EBITDA declined 39.6% year over year to $8.8 million. Adjusted EBITDA margin of 6% contracted 400 bps year over year.
Segment Discussion
APUS: Revenues of $73.6 million rose 5.2% from the year-ago period’s levels of $69.9 million. APUS’ total net course registration increased 5.7% from second-quarter 2022 to 88,300. The upside was backed by increases in military registrations from students utilizing TA.
RU: The segment reported revenues of $52 million for the quarter, down 18.7% from $63.9 million reported a year ago due to lower nursing enrollment. RU’s total student enrollment fell 12.6% from the prior-year period’s levels to 13,900 due to a 21.9% decline in nursing and a 2.6% decline in non-nursing enrollment.
HCN: Segment’s revenues for the quarter rose 24.2% year over year to $14.3 million. Total student enrollment at HCN increased 23% from the prior-year quarter’s levels to 3,000, marking an all-time high. The upside was backed by enrollment growth in recently opened campuses, which include the opening of the Detroit, MI campus in October 2022.
Financials
At the end of second-quarter 2023, American Public had total cash and cash equivalents of $139.4 million, up from $129.5 million at 2022 end.
Q3 Guidance
APEI expects total revenues to range between -1% and 1% year over year to between $148.3 million and $150.3 million. It anticipates an adjusted loss of 32-24 cents per share, compared with the loss of 20 cents per share reported a year ago. Adjusted EBITDA is expected to be within $8.4-$10.4 million, compared with $9.5 million reported in the prior-year quarter.
APUS’ total net course registrations are likely to be between 90,500 and 92,500, reflecting growth of 6-8% year over year. HCN’s total enrollment is expected to increase 17% from the prior year’s tally to 2,800 students. RU’s student enrollment will likely fall 10% from the year-ago quarter’s figure to 13,500. Nursing student enrollment is likely to fall 25% to 5,700 while non-nursing student enrollment is expected to increase 5% to 7,700, year over year.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
Currently, American Public Education has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
American Public Education has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
American Public Education is part of the Zacks Schools industry. Over the past month, Strategic Education (STRA - Free Report) , a stock from the same industry, has gained 0.3%. The company reported its results for the quarter ended June 2023 more than a month ago.
Strategic Education reported revenues of $287.68 million in the last reported quarter, representing a year-over-year change of +5.2%. EPS of $0.82 for the same period compares with $0.85 a year ago.
Strategic Education is expected to post earnings of $0.86 per share for the current quarter, representing a year-over-year change of +160.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +12.3%.
Strategic Education has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
American Public Education (APEI) Down 16.1% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for American Public Education (APEI - Free Report) . Shares have lost about 16.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is American Public Education due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
American Public Q2 Earnings & Revenues Top, Down Y/Y
American Public reported better-than-expected second-quarter 2023 results with earnings and revenues surpassing the Zacks Consensus Estimate. However, both metrics declined on a year-over-year basis.
The company’s results benefited from the solid contributions of the American Public University System (APUS) and Hondros College of Nursing segment (HCN) segments’ as well as Graduate School USA revenues included in Corporate and Other, and cost-saving initiatives.
APEI exceeded the adjusted EBITDA guidance of $4.4-$6.4 million by 38%.
Delving Deeper
The company reported an adjusted loss of 25 cents per share, narrower than the Zacks Consensus Estimate of a loss of 31 cents per share by 19.4%. In the year-ago quarter, APEI reported an adjusted loss of 6 cents per share.
Total revenues of $147.2 million topped the consensus mark of $146.2 million by 0.7% but decreased 1.6% from the year-ago period’s levels. The dismal performance of the Rasmussen University (RU) segment ailed the other segments’ tailwind.
Total costs and expenses (excluding impairment charges) increased 1.7% to $148.5 million year over year, owing to increased employee compensation costs, bad debt expenses, building rent and maintenance costs, along with technology costs, partially offset by a decrease in advertising costs. Excluding impairment charges, costs and expenses were 100.9% of total revenues in the second quarter of 2023, up from 97.6% of revenues reported in the prior-year period.
Adjusted EBITDA declined 39.6% year over year to $8.8 million. Adjusted EBITDA margin of 6% contracted 400 bps year over year.
Segment Discussion
APUS: Revenues of $73.6 million rose 5.2% from the year-ago period’s levels of $69.9 million. APUS’ total net course registration increased 5.7% from second-quarter 2022 to 88,300. The upside was backed by increases in military registrations from students utilizing TA.
RU: The segment reported revenues of $52 million for the quarter, down 18.7% from $63.9 million reported a year ago due to lower nursing enrollment. RU’s total student enrollment fell 12.6% from the prior-year period’s levels to 13,900 due to a 21.9% decline in nursing and a 2.6% decline in non-nursing enrollment.
HCN: Segment’s revenues for the quarter rose 24.2% year over year to $14.3 million. Total student enrollment at HCN increased 23% from the prior-year quarter’s levels to 3,000, marking an all-time high. The upside was backed by enrollment growth in recently opened campuses, which include the opening of the Detroit, MI campus in October 2022.
Financials
At the end of second-quarter 2023, American Public had total cash and cash equivalents of $139.4 million, up from $129.5 million at 2022 end.
Q3 Guidance
APEI expects total revenues to range between -1% and 1% year over year to between $148.3 million and $150.3 million. It anticipates an adjusted loss of 32-24 cents per share, compared with the loss of 20 cents per share reported a year ago. Adjusted EBITDA is expected to be within $8.4-$10.4 million, compared with $9.5 million reported in the prior-year quarter.
APUS’ total net course registrations are likely to be between 90,500 and 92,500, reflecting growth of 6-8% year over year. HCN’s total enrollment is expected to increase 17% from the prior year’s tally to 2,800 students. RU’s student enrollment will likely fall 10% from the year-ago quarter’s figure to 13,500. Nursing student enrollment is likely to fall 25% to 5,700 while non-nursing student enrollment is expected to increase 5% to 7,700, year over year.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
Currently, American Public Education has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
American Public Education has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
American Public Education is part of the Zacks Schools industry. Over the past month, Strategic Education (STRA - Free Report) , a stock from the same industry, has gained 0.3%. The company reported its results for the quarter ended June 2023 more than a month ago.
Strategic Education reported revenues of $287.68 million in the last reported quarter, representing a year-over-year change of +5.2%. EPS of $0.82 for the same period compares with $0.85 a year ago.
Strategic Education is expected to post earnings of $0.86 per share for the current quarter, representing a year-over-year change of +160.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +12.3%.
Strategic Education has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.