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.
Why Is American Public Education (APEI) Up 35.1% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for American Public Education (APEI - Free Report) . Shares have added about 35.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is American Public Education due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
American Public Q4 Earnings & Revenues Miss Estimates
American Public Education, Inc. reported dismal results for fourth-quarter 2022. The top and the bottom lines missed the Zacks Consensus Estimate. Low contributions and increased expenses from the RU segment and the inclusion of GSUSA’s cost and expenses negatively impacted the company’s performance during the quarter.
Delving Deeper
The company reported an adjusted loss of 27 cents per share, wider than the consensus mark of a loss of 18 cents. In the prior-year quarter, the company had reported adjusted earnings of 50 cents per share. The decline was mainly due to lower contributions from the RU segment.
Total revenues of $152.4 million missed the consensus mark of $153 million by almost 0.2% and also declined 1% from the year-ago period’s levels. The downside was due to costs and expenses of GSUSA (included from this quarter) and the RU segment.
Total costs and expenses increased 11.1% year over year to $152.7 million due to the inclusion of RU and GSUSA. Adjusted EBITDA declined 47.4% year over year to $15.4 million.
Segment Discussion
The company now operates in three segments, namely, the American Public University System (“APUS”), RU and Hondros College of Nursing segment (“HCN”).
APUS: Revenues of $73.4 million were on par with the year-ago period’s levels. APUS total net course registration increased 1% from the year-ago period’s levels to 87,200 in the fourth quarter, driven by strong active-duty enrollment. In the quarter, military registrations were up 4% and army registrations rose 7%.
RU: The segment reported revenues of $60.7 million for the quarter, down from $68.4 million reported a year ago. RU’s total student enrollment fell 9% from the prior-year period’s levels to 15,600 due to 23% collective decline in both nursing and non-nursing enrollment.
HCN: Segment’s revenues inched up 3% year over year to $12.6 million. Total student enrollment at HCN increased 4% from the prior-year quarter’s levels to 2,600.
Financials
As of Dec 31, 2022, American Public had total unrestricted cash and cash equivalents of $102.6 million compared with $122.6 million at the 2021-end.
Q1 Guidance
In first-quarter 2023, APEI expects total revenues to be flat to up 2% and be in the range of $155.1-$157.1 million. In the same quarter it anticipates adjusted loss in the range of 44-51 cents per share. Adjusted EBITDA is anticipated to be between $2.4 million and $4.1 million, suggesting a decline of 86-76% year over year.
APUS total net course registrations are likely to be approximately 96,300, implying growth of 2.4% year over year. HCN’s total student enrollment is expected to increase 10% to 2,700. RU’s student enrollment is likely to fall 12% to 14,300. Nursing student enrollment is likely to fall 19% to 6,800. Non-nursing student enrollment is expected to decline 4% year over year to 7,500.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -444.53% due to these changes.
VGM Scores
Currently, American Public Education has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise American Public Education has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is American Public Education (APEI) Up 35.1% Since Last Earnings Report?
It has been about a month since the last earnings report for American Public Education (APEI - Free Report) . Shares have added about 35.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is American Public Education due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
American Public Q4 Earnings & Revenues Miss Estimates
American Public Education, Inc. reported dismal results for fourth-quarter 2022. The top and the bottom lines missed the Zacks Consensus Estimate. Low contributions and increased expenses from the RU segment and the inclusion of GSUSA’s cost and expenses negatively impacted the company’s performance during the quarter.
Delving Deeper
The company reported an adjusted loss of 27 cents per share, wider than the consensus mark of a loss of 18 cents. In the prior-year quarter, the company had reported adjusted earnings of 50 cents per share. The decline was mainly due to lower contributions from the RU segment.
Total revenues of $152.4 million missed the consensus mark of $153 million by almost 0.2% and also declined 1% from the year-ago period’s levels. The downside was due to costs and expenses of GSUSA (included from this quarter) and the RU segment.
Total costs and expenses increased 11.1% year over year to $152.7 million due to the inclusion of RU and GSUSA. Adjusted EBITDA declined 47.4% year over year to $15.4 million.
Segment Discussion
The company now operates in three segments, namely, the American Public University System (“APUS”), RU and Hondros College of Nursing segment (“HCN”).
APUS: Revenues of $73.4 million were on par with the year-ago period’s levels. APUS total net course registration increased 1% from the year-ago period’s levels to 87,200 in the fourth quarter, driven by strong active-duty enrollment. In the quarter, military registrations were up 4% and army registrations rose 7%.
RU: The segment reported revenues of $60.7 million for the quarter, down from $68.4 million reported a year ago. RU’s total student enrollment fell 9% from the prior-year period’s levels to 15,600 due to 23% collective decline in both nursing and non-nursing enrollment.
HCN: Segment’s revenues inched up 3% year over year to $12.6 million. Total student enrollment at HCN increased 4% from the prior-year quarter’s levels to 2,600.
Financials
As of Dec 31, 2022, American Public had total unrestricted cash and cash equivalents of $102.6 million compared with $122.6 million at the 2021-end.
Q1 Guidance
In first-quarter 2023, APEI expects total revenues to be flat to up 2% and be in the range of $155.1-$157.1 million. In the same quarter it anticipates adjusted loss in the range of 44-51 cents per share. Adjusted EBITDA is anticipated to be between $2.4 million and $4.1 million, suggesting a decline of 86-76% year over year.
APUS total net course registrations are likely to be approximately 96,300, implying growth of 2.4% year over year. HCN’s total student enrollment is expected to increase 10% to 2,700. RU’s student enrollment is likely to fall 12% to 14,300. Nursing student enrollment is likely to fall 19% to 6,800. Non-nursing student enrollment is expected to decline 4% year over year to 7,500.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -444.53% due to these changes.
VGM Scores
Currently, American Public Education has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise American Public Education has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.