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American Public (APEI) Stock Up on Q3 Earnings & Revenue Beat
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American Public Education, Inc. (APEI - Free Report) delivered strong earnings in third-quarter 2023. The bottom line handily surpassed the Zacks Consensus Estimate on the back of contributions from the American Public University System (“APUS”), Hondros College of Nursing segment (“HCN”) and Graduate School ("GSUSA").
Revenues also beat the analysts’ expectations and jumped year over year.
Shares of this post-secondary education provider jumped 22.33% in the after-hours trading session on Nov 7. Investors’ sentiments might have been boosted by exceeding expectations for adjusted EBITDA.
Delving Deeper
The company reported adjusted earnings of 2 cents per share versus the consensus mark of a loss of 25 cents.
American Public Education, Inc. Price, Consensus and EPS Surprise
Total revenues of $150.8 million topped the consensus mark of $149.2 million by 1.1% and inched up 0.9% from the year-ago period’s levels. Solid performance across the business segments (barring the Rasmussen University (“RU”) unit) bode well.
Total costs and expenses decreased 4.1% year over year to $144.4 million. A decline in advertising, depreciation and amortization and marketing support material costs, partially offset by a rise in technology costs, bad debt expenses and employee compensation costs in the APUS and HCN segments, supported the decline.
Adjusted EBITDA increased 91.4% year over year to $18.1 million. Adjusted EBITDA margin of 12% expanded 570 bps year over year.
Segment Discussion
APUS: Revenues of $76.4 million rose 11% from the year-ago period’s levels of $68.7 million. The increase was primarily due to a 7.6% increase in net course registrations and tuition and fee increases implemented in April and July.
APUS’ total net course registration increased by 8% from third-quarter 2022 to 92,300. In the quarter, military registrations were up 12% and veteran students’ registrations rose 5%. Adjusted EBITDA margin of 30.4% expanded from 20.5% year over year.
RU: The segment reported revenues of $52.1 million for the quarter, down 15% from $61.5 million reported a year ago. This was due to a 10% fall in total student enrollment, partially offset by an increase in the tuition of certain programs implemented in January 2023.
RU’s total student enrollment fell to 13,500 due to a 19% decline in nursing and a 4% decrease in non-nursing enrollment. Adjusted EBITDA margin of negative 10.3% widened from negative 3.1% reported in the prior year.
HCN: Segment’s revenues rose 20% year over year to $13.7 million. The increase was backed by growth in total student enrollment and tuition fees (implemented during the second quarter).
Total student enrollment at HCN increased 17% from the prior-year quarter’s levels to 2,800. Adjusted EBITDA margin of negative 2.4% improved by 760 bps year over year.
GSUSA revenue increased 10% year over year to $8.6 million. This was included in Corporate and Other.
Financials
At the end of the third quarter, American Public had total cash and cash equivalents of $155.2 million from $129.6 million at the 2022-end.
Q4 Guidance
APEI expects total revenues to decline by 21% year over year to $149.3-$151.3 million.
It anticipates adjusted earnings of 7-15 cents per share versus a loss of 27 cents reported a year ago.
Adjusted EBITDA is expected to be within $14.9-$16.9 million, suggesting a decline of 3% to growth of 10% year over year.
APUS’ total net course registrations are likely to be 88,900-90,700, reflecting growth of 2-4% year over year.
HCN’s total enrollment is expected to increase 19% from the prior year’s figure to an all-time high of 3,100 students.
RU’s student enrollment will likely fall 10% from the year-ago quarter’s figure to 14,100. Nursing student enrollment is likely to decline 25% to 5,700, while non-nursing student enrollment is expected to rise 5% to 8,400 year over year.
Strategic Education, Inc. or SEI (STRA - Free Report) reported impressive results for third-quarter 2023. Its quarterly earnings and revenues topped the respective Zacks Consensus Estimate and increased year over year.
Growth across its three segments, led by continued enrollment growth in U.S. Higher Education, driven significantly by employer-affiliated enrollment, strong growth in Education Technology Services (earlier known as Alternative Learning) and improving performance in Australia/New Zealand, drove the result.
Adtalem Global Education Inc. (ATGE - Free Report) reported impressive results for first-quarter fiscal 2024. Earnings and revenues surpassed their respective Zacks Consensus Estimate and increased year over year, given solid enrollment growth and strategic initiatives.
The company's accelerated performance across five operational pillars highlights its market-leading scale and healthcare focus. The company also raised its fiscal 2024 guidance. With 80,000 students and 300,000 alumni, ATGE is well-equipped to address critical healthcare provider shortages.
Leggett & Platt, Inc. (LEG - Free Report) reported tepid third-quarter 2023 results, with earnings and sales missing the Zacks Consensus Estimate.
The top and bottom lines declined on a year-over-year basis. The downtrend was caused by persistent weak demand in the Bedding Products and Furniture and Flooring & Textile Products segments, partially offset by strong demand in the Specialized Products segment.
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American Public (APEI) Stock Up on Q3 Earnings & Revenue Beat
American Public Education, Inc. (APEI - Free Report) delivered strong earnings in third-quarter 2023. The bottom line handily surpassed the Zacks Consensus Estimate on the back of contributions from the American Public University System (“APUS”), Hondros College of Nursing segment (“HCN”) and Graduate School ("GSUSA").
Revenues also beat the analysts’ expectations and jumped year over year.
Shares of this post-secondary education provider jumped 22.33% in the after-hours trading session on Nov 7. Investors’ sentiments might have been boosted by exceeding expectations for adjusted EBITDA.
Delving Deeper
The company reported adjusted earnings of 2 cents per share versus the consensus mark of a loss of 25 cents.
American Public Education, Inc. Price, Consensus and EPS Surprise
American Public Education, Inc. price-consensus-eps-surprise-chart | American Public Education, Inc. Quote
Total revenues of $150.8 million topped the consensus mark of $149.2 million by 1.1% and inched up 0.9% from the year-ago period’s levels. Solid performance across the business segments (barring the Rasmussen University (“RU”) unit) bode well.
Total costs and expenses decreased 4.1% year over year to $144.4 million. A decline in advertising, depreciation and amortization and marketing support material costs, partially offset by a rise in technology costs, bad debt expenses and employee compensation costs in the APUS and HCN segments, supported the decline.
Adjusted EBITDA increased 91.4% year over year to $18.1 million. Adjusted EBITDA margin of 12% expanded 570 bps year over year.
Segment Discussion
APUS: Revenues of $76.4 million rose 11% from the year-ago period’s levels of $68.7 million. The increase was primarily due to a 7.6% increase in net course registrations and tuition and fee increases implemented in April and July.
APUS’ total net course registration increased by 8% from third-quarter 2022 to 92,300. In the quarter, military registrations were up 12% and veteran students’ registrations rose 5%. Adjusted EBITDA margin of 30.4% expanded from 20.5% year over year.
RU: The segment reported revenues of $52.1 million for the quarter, down 15% from $61.5 million reported a year ago. This was due to a 10% fall in total student enrollment, partially offset by an increase in the tuition of certain programs implemented in January 2023.
RU’s total student enrollment fell to 13,500 due to a 19% decline in nursing and a 4% decrease in non-nursing enrollment. Adjusted EBITDA margin of negative 10.3% widened from negative 3.1% reported in the prior year.
HCN: Segment’s revenues rose 20% year over year to $13.7 million. The increase was backed by growth in total student enrollment and tuition fees (implemented during the second quarter).
Total student enrollment at HCN increased 17% from the prior-year quarter’s levels to 2,800. Adjusted EBITDA margin of negative 2.4% improved by 760 bps year over year.
GSUSA revenue increased 10% year over year to $8.6 million. This was included in Corporate and Other.
Financials
At the end of the third quarter, American Public had total cash and cash equivalents of $155.2 million from $129.6 million at the 2022-end.
Q4 Guidance
APEI expects total revenues to decline by 21% year over year to $149.3-$151.3 million.
It anticipates adjusted earnings of 7-15 cents per share versus a loss of 27 cents reported a year ago.
Adjusted EBITDA is expected to be within $14.9-$16.9 million, suggesting a decline of 3% to growth of 10% year over year.
APUS’ total net course registrations are likely to be 88,900-90,700, reflecting growth of 2-4% year over year.
HCN’s total enrollment is expected to increase 19% from the prior year’s figure to an all-time high of 3,100 students.
RU’s student enrollment will likely fall 10% from the year-ago quarter’s figure to 14,100. Nursing student enrollment is likely to decline 25% to 5,700, while non-nursing student enrollment is expected to rise 5% to 8,400 year over year.
Zacks Rank & Recent Consumer Discretionary Releases
APEI currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Strategic Education, Inc. or SEI (STRA - Free Report) reported impressive results for third-quarter 2023. Its quarterly earnings and revenues topped the respective Zacks Consensus Estimate and increased year over year.
Growth across its three segments, led by continued enrollment growth in U.S. Higher Education, driven significantly by employer-affiliated enrollment, strong growth in Education Technology Services (earlier known as Alternative Learning) and improving performance in Australia/New Zealand, drove the result.
Adtalem Global Education Inc. (ATGE - Free Report) reported impressive results for first-quarter fiscal 2024. Earnings and revenues surpassed their respective Zacks Consensus Estimate and increased year over year, given solid enrollment growth and strategic initiatives.
The company's accelerated performance across five operational pillars highlights its market-leading scale and healthcare focus. The company also raised its fiscal 2024 guidance. With 80,000 students and 300,000 alumni, ATGE is well-equipped to address critical healthcare provider shortages.
Leggett & Platt, Inc. (LEG - Free Report) reported tepid third-quarter 2023 results, with earnings and sales missing the Zacks Consensus Estimate.
The top and bottom lines declined on a year-over-year basis. The downtrend was caused by persistent weak demand in the Bedding Products and Furniture and Flooring & Textile Products segments, partially offset by strong demand in the Specialized Products segment.