Back to top

Image: Bigstock

American Public (APEI) Q4 Earnings Top Estimates, Guidance Tepid

Read MoreHide Full Article

American Public Education, Inc. (APEI - Free Report) reported impressive results in fourth-quarter 2021. Quarterly earnings and revenues surpassed the Zacks Consensus Estimate and increased on a year-over-year basis.

American Public’s shares fell 1.6% in the after-hours trading session on Mar 2, following tepid earnings results.

On Jan 1, APEI completed the acquisition of Graduate School USA, a federal workforce training provider.

Delving Deeper

The company reported earnings per share of 50 cents, which topped the consensus mark of 35 cents by 42.9% and increased 6.4% year over year.

American Public Education, Inc. Price, Consensus and EPS Surprise

 

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 $154 million topped the consensus mark of $152 million by 1.3% and increased 79.3% from the year-ago period’s levels. The upside was backed by the acquisition of Rasmussen University (“RU”).

Total costs and expenses increased more than 80% year over year to $137.5 million due to the inclusion of RU. Adjusted EBITDA increased 85.5% year over year to $29.3 million.

Segment Discussion

The company now operates within three segments, namely, American Public University System’s (“APUS”), RU and Hondros College of Nursing segment (“HCN”).

APUS: Revenues of $73.4 million declined 2.9% from the year-ago periods levels. APUS’s total net course registration slipped 2% from the year-ago period’s levels to 86,600 in the fourth quarter.

RU: The segment reported revenues of $68.4 million for the quarter. RU’s total student enrollment also fell 3% from the prior-year quarter’s figure to 17,100.

HCN: Segment’s revenues rose 18.1% year over year to $12.3 million owing to improved enrollment. Total student enrollment at HCN increased 17% from the prior-year quarter’s levels to 2,510.

2021 Highlights

Total revenues were $418.8 million, up 30.1% year over year. The upside was backed by the inclusion of RU and an increase in student enrollment at HCN, partially offset by a decline in APUS net registrations. Earnings of 97 cents per share fell from $1.25 in 2020. Adjusted EBITDA increased 27.8% year over year to $64.7 million.

Financials

At 2021-end, American Public had total cash and cash equivalents of $149.6 million compared with $227.7 million at 2020-end.

First-Quarter Guidance

The company expects total revenues to increase 75-80% year over year. The Zacks Consensus Estimate for the metric is pegged at $153.35 million, indicating growth of 73.2% year over year. It anticipates the bottom line within 12-17 cents per share, indicating a decline of 76-65% year over year. The consensus mark for first-quarter earnings is pegged at 41 cents, suggesting a fall of 73.2% from the prior-year quarter’s levels. Adjusted EBITDA is anticipated within $17.7-$19.8 million, suggesting a rise of 10-23% year over year.

At APUS, total net course registrations are likely to rise 0-3% year over year to 92,900-95,700. HCN’s total student enrollment is expected to increase by about 2,500 or 8% from the prior year’s tally. RU’s student enrollment is likely to fall 7% from the year-ago quarter’s figure to 16,200 (a 2% rise in Nursing is expected to be offset by a 14% decline in Non-Nursing).

Zacks Rank

APEI currently carries a Zacks Rank #4 (Sell).

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

A Look at Some Recent Consumer Discretionary Releases

Mohawk Industries, Inc. (MHK - Free Report) reported impressive results for fourth-quarter 2021. The top and the bottom line surpassed their respective Zacks Consensus Estimate as well as improved on a year-over-year basis.

The upside was backed by solid housing demand and favorable price, mix and productivity.

Adtalem Global Education Inc. (ATGE - Free Report) reported lackluster second-quarter fiscal 2022 results. The company’s earnings and revenues lagged their respective Zacks Consensus Estimate due to the pandemic-related challenges.

Also, Adtalem reduced its fiscal 2022 guidance for earnings and revenues due to the pending sale of the Financial Services segment and COVID-related headwinds associated with the Omicron variant.

Leggett & Platt, Incorporated (LEG - Free Report) reported tepid earnings for fourth-quarter 2021. The top and the bottom line surpassed the Zacks Consensus Estimate. On a year-over-year basis, earnings declined despite revenue growth.

Despite strong raw material-related selling prices and acquisitions, Leggett witnessed higher costs associated with supply chain issues, semiconductor and foam chemical shortages, labor constraints as well as transportation challenges.

Published in