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American Public (APEI) Stock Dips Despite Q1 Earnings Beat
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American Public Education, Inc. (APEI - Free Report) delivered strong results for first-quarter 2024. The bottom line handily surpassed the Zacks Consensus Estimate and significantly improved from the previous year.
Revenues also beat the analysts’ expectations and jumped year over year, on the back of contributions from the American Public University System (“APUS”) and Hondros College of Nursing (“HCN”) segment. Yet, lower revenues from Rasmussen University ("RU") and Graduate School ("GSUSA") partially offset the growth.
The company has been benefiting from consistent enrollment growth at APUS and HCN, along with improvement at RU. Also, select tuition and fee increases, combined with the positive impact of cost reductions and realignments taken in 2023 added to the growth.
Shares of this post-secondary education provider lost 3.8% in the after-hours trading session on May 7, despite it raised 2024 guidance for revenues and adjusted EBITDA.
Delving Deeper
The company reported an adjusted loss of 6 cents per share, which beat the consensus mark of a loss of 19 cents by 68.4%. In the prior year, the company reported an adjusted loss of 38 cents per share.
American Public Education, Inc. Price, Consensus and EPS Surprise
Total revenues of $154.4 million topped the consensus mark of $152 million by 1.4% and inched up 3.2% from the year-ago period’s levels. The reported figure exceeded the high end of the guidance provided by APEI in fourth-quarter 2023.
Total costs and expenses decreased 3.7% year over year to $149.3 million. A decline in advertising, and depreciation and amortization costs aided the results.
Adjusted EBITDA increased a whopping 143% year over year to $17.1 million, exceeding high-end guidance of $10 million. Adjusted EBITDA margin of 11% expanded from 5% year over year.
Segment Discussion
APUS: Revenues of $80.7 million rose 9% from the year-ago period’s levels. The uptick was primarily due to growth in registrations and the impact of select tuition increases in 2023.
APUS’ total net course registration increased 2.8% from the year-ago period to 99,000. In the quarter, military registrations were up 4%. Adjusted EBITDA margin of 30% expanded from 25% year over year, driven by higher enrollment, select price increases, and lower marketing spend.
RU: The segment reported revenues of $53.1 million for the quarter, down 8% from $57.5 million reported a year ago. This was due to lower ADN nursing enrollment.
RU’s total student enrollment fell 5.6% to 13,500 due to a 19% decline in nursing and a 4% decrease in non-nursing enrollment. Adjusted EBITDA margin of negative 5% narrowed from negative 8% reported in the prior year, due to stabilizing enrollment and cost realignment.
HCN: The segment’s revenues rose 25% year over year to $16.4 million. The increase was backed by solid growth in total student enrollment and modest tuition and fee increase.
Total student enrollment at HCN increased 22% from the prior-year quarter’s levels to 3,300. Adjusted EBITDA margin of 0.1% improved from negative 7.7% reported a year ago.
GSUSA: The segment’s revenues decreased 18% year over year to $4.2 million impacted by government spending uncertainty. Adjusted EBITDA margin of negative 27% widened from the year-ago figure of negative 25%. This was included in Corporate and Other.
Financials
At the end of the first quarter, American Public had total cash, cash equivalents, and restricted cash of $153.2 million, up from $144.3 million at 2023-end.
Q2 Guidance
APEI expects total revenues to increase 4%-5% year over year to $153-$155 million. It anticipates profits between a loss of 11 and an earnings of 5 cents per share versus a loss of 25 cents reported a year ago. Adjusted EBITDA is expected to be within $8-$12 million, a rise of 2-36% year over year.
APUS’ total net course registrations are likely to be 89,500-92,200, reflecting growth of 1.5-4.5% year over year. HCN’s total enrollment is expected to increase 10% from the prior year’s figure to 3,300 students.
RU’s student enrollment is expected to decline 2% from the year-ago quarter’s figure to 13,600. Nursing student enrollment is likely to decline 9% to 6,200, while non-nursing student enrollment is expected to rise 4% to 7,400 year over year.
2024 Guidance Raised
Total revenues are now expected to grow 3-5% year over year to $620-$630 million versus the prior projection of $610-$620 million. Adjusted EBITDA is now expected to be between $60 and $70 million (up from earlier expectations of $55-$65 million), reflecting 1-17% growth year over year.
Capital expenditures are still expected to be in the range of $17-$20 million, reflecting 22-44% growth.
Adtalem Global Education Inc. (ATGE - Free Report) reported impressive results for third-quarter fiscal 2024, wherein earnings and revenues surpassed their respective Zacks Consensus Estimate. Also, both metrics increased year over year.
Revenue growth and operational efficiencies, which were partially offset by investments in Growth with Purpose initiatives, helped ATGE post solid margins. Impressively, its Growth with Purpose strategy allowed the company to expand access to high-quality, in-demand programs.
Strategic Education, Inc. (STRA - Free Report) , or SEI, reported stellar results for first-quarter 2024. Its quarterly earnings and revenues topped the Zacks Consensus Estimate and increased year over year.
The quarterly results reflect solid growth across the company’s three reportable segments, attributable to continued enrollment growth in the U.S. Higher Education segment, especially employer-affiliated enrollments, and total enrollment improvement in the Australia/New Zealand segment.
Leggett & Platt, Incorporated (LEG - Free Report) reported tepid first-quarter 2024 results, wherein earnings and net sales missed the Zacks Consensus Estimate. The metrics declined on a year-over-year basis due to persistent weak demand in most of the markets served and lower price realization.
Leggett significantly reduced its second-quarter dividend to 5 cents from the prior-year figure of 46 cents. The company noted that the move has been undertaken to free up capital to accelerate the deleveraging of its balance sheet and solidify long-held financial strength. The dividend will be paid on Jul 15, 2024, to shareholders of record on Jun 14.
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American Public (APEI) Stock Dips Despite Q1 Earnings Beat
American Public Education, Inc. (APEI - Free Report) delivered strong results for first-quarter 2024. The bottom line handily surpassed the Zacks Consensus Estimate and significantly improved from the previous year.
Revenues also beat the analysts’ expectations and jumped year over year, on the back of contributions from the American Public University System (“APUS”) and Hondros College of Nursing (“HCN”) segment. Yet, lower revenues from Rasmussen University ("RU") and Graduate School ("GSUSA") partially offset the growth.
The company has been benefiting from consistent enrollment growth at APUS and HCN, along with improvement at RU. Also, select tuition and fee increases, combined with the positive impact of cost reductions and realignments taken in 2023 added to the growth.
Shares of this post-secondary education provider lost 3.8% in the after-hours trading session on May 7, despite it raised 2024 guidance for revenues and adjusted EBITDA.
Delving Deeper
The company reported an adjusted loss of 6 cents per share, which beat the consensus mark of a loss of 19 cents by 68.4%. In the prior year, the company reported an adjusted loss of 38 cents per share.
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 $154.4 million topped the consensus mark of $152 million by 1.4% and inched up 3.2% from the year-ago period’s levels. The reported figure exceeded the high end of the guidance provided by APEI in fourth-quarter 2023.
Total costs and expenses decreased 3.7% year over year to $149.3 million. A decline in advertising, and depreciation and amortization costs aided the results.
Adjusted EBITDA increased a whopping 143% year over year to $17.1 million, exceeding high-end guidance of $10 million. Adjusted EBITDA margin of 11% expanded from 5% year over year.
Segment Discussion
APUS: Revenues of $80.7 million rose 9% from the year-ago period’s levels. The uptick was primarily due to growth in registrations and the impact of select tuition increases in 2023.
APUS’ total net course registration increased 2.8% from the year-ago period to 99,000. In the quarter, military registrations were up 4%. Adjusted EBITDA margin of 30% expanded from 25% year over year, driven by higher enrollment, select price increases, and lower marketing spend.
RU: The segment reported revenues of $53.1 million for the quarter, down 8% from $57.5 million reported a year ago. This was due to lower ADN nursing enrollment.
RU’s total student enrollment fell 5.6% to 13,500 due to a 19% decline in nursing and a 4% decrease in non-nursing enrollment. Adjusted EBITDA margin of negative 5% narrowed from negative 8% reported in the prior year, due to stabilizing enrollment and cost realignment.
HCN: The segment’s revenues rose 25% year over year to $16.4 million. The increase was backed by solid growth in total student enrollment and modest tuition and fee increase.
Total student enrollment at HCN increased 22% from the prior-year quarter’s levels to 3,300. Adjusted EBITDA margin of 0.1% improved from negative 7.7% reported a year ago.
GSUSA: The segment’s revenues decreased 18% year over year to $4.2 million impacted by government spending uncertainty. Adjusted EBITDA margin of negative 27% widened from the year-ago figure of negative 25%. This was included in Corporate and Other.
Financials
At the end of the first quarter, American Public had total cash, cash equivalents, and restricted cash of $153.2 million, up from $144.3 million at 2023-end.
Q2 Guidance
APEI expects total revenues to increase 4%-5% year over year to $153-$155 million. It anticipates profits between a loss of 11 and an earnings of 5 cents per share versus a loss of 25 cents reported a year ago. Adjusted EBITDA is expected to be within $8-$12 million, a rise of 2-36% year over year.
APUS’ total net course registrations are likely to be 89,500-92,200, reflecting growth of 1.5-4.5% year over year. HCN’s total enrollment is expected to increase 10% from the prior year’s figure to 3,300 students.
RU’s student enrollment is expected to decline 2% from the year-ago quarter’s figure to 13,600. Nursing student enrollment is likely to decline 9% to 6,200, while non-nursing student enrollment is expected to rise 4% to 7,400 year over year.
2024 Guidance Raised
Total revenues are now expected to grow 3-5% year over year to $620-$630 million versus the prior projection of $610-$620 million. Adjusted EBITDA is now expected to be between $60 and $70 million (up from earlier expectations of $55-$65 million), reflecting 1-17% growth year over year.
Capital expenditures are still expected to be in the range of $17-$20 million, reflecting 22-44% growth.
Zacks Rank & Recent Consumer Discretionary Releases
APEI currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Adtalem Global Education Inc. (ATGE - Free Report) reported impressive results for third-quarter fiscal 2024, wherein earnings and revenues surpassed their respective Zacks Consensus Estimate. Also, both metrics increased year over year.
Revenue growth and operational efficiencies, which were partially offset by investments in Growth with Purpose initiatives, helped ATGE post solid margins. Impressively, its Growth with Purpose strategy allowed the company to expand access to high-quality, in-demand programs.
Strategic Education, Inc. (STRA - Free Report) , or SEI, reported stellar results for first-quarter 2024. Its quarterly earnings and revenues topped the Zacks Consensus Estimate and increased year over year.
The quarterly results reflect solid growth across the company’s three reportable segments, attributable to continued enrollment growth in the U.S. Higher Education segment, especially employer-affiliated enrollments, and total enrollment improvement in the Australia/New Zealand segment.
Leggett & Platt, Incorporated (LEG - Free Report) reported tepid first-quarter 2024 results, wherein earnings and net sales missed the Zacks Consensus Estimate. The metrics declined on a year-over-year basis due to persistent weak demand in most of the markets served and lower price realization.
Leggett significantly reduced its second-quarter dividend to 5 cents from the prior-year figure of 46 cents. The company noted that the move has been undertaken to free up capital to accelerate the deleveraging of its balance sheet and solidify long-held financial strength. The dividend will be paid on Jul 15, 2024, to shareholders of record on Jun 14.