American Public Education (NASDAQ:APEI) Posts Earnings Results

Key Points

• American Public Education reported quarterly EPS of $0.32, beating the $0.26 consensus, and revenue of $169.14 million, above expectations of $165.79 million.
• APEI exceeded third-quarter guidance and raised its full-year outlook, now projecting revenue of $695 million–$701 million and diluted EPS of $2.59–$2.84.
• Demand was supported by 3.8% growth in Military+ course registrations and 9% Health+ revenue growth, but adjusted EBITDA fell to $17.5 million from $20.7 million as marketing and bad-debt costs rose.

American Public Education (NASDAQ:APEI - Get Free Report) posted its quarterly earnings data on Monday. The company reported $0.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.26 by $0.06, FiscalAI reports. The business had revenue of $169.14 million for the quarter, compared to analysts' expectations of $165.79 million. American Public Education had a return on equity of 15.30% and a net margin of 6.84%.

Here are the key takeaways from American Public Education's conference call:

• APEI exceeded third-quarter guidance on revenue, net income, Adjusted EBITDA and diluted EPS, and raised its full-year outlook across those measures. Full-year revenue guidance is now $695 million–$701 million, with diluted EPS guidance of $2.59–$2.84.
• Core demand remained solid: Military+ net course registrations rose 3.8%, while Health+ revenue increased 9%, led by campus nursing and online healthcare. However, weakness in non-healthcare online programs is weighing on Health+’s overall enrollment growth.
• Third-quarter Adjusted EBITDA fell to $17.5 million from $20.7 million a year earlier, and margin declined to 10.4% from 12.7%. Higher marketing costs and bad-debt expense related to delayed Title IV processing contributed; management said the delays were temporary, and about $6 million of Military+ revenue shifted into Q4.
• APEI repurchased about $9 million of shares in the quarter and reported $128.7 million of cash and short-term investments in excess of debt. Management reiterated its long-term growth plan, including targeted recurring cost synergies from the institutional combination and a Health+ Student Lifecycle Platform launch in early 2027.

American Public Education Trading Up 4.9%

Shares of American Public Education stock traded up $1.81 during trading hours on Monday, reaching $39.09. The stock had a trading volume of 344,179 shares, compared to its average volume of 289,333. The firm has a 50 day simple moving average of $44.80 and a two-hundred day simple moving average of $49.57. The firm has a market capitalization of $715.43 million, a price-to-earnings ratio of 16.09, a P/E/G ratio of 0.95 and a beta of 1.49. The company has a current ratio of 3.25, a quick ratio of 3.25 and a debt-to-equity ratio of 0.26. American Public Education has a 1 year low of $31.13 and a 1 year high of $61.59.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on APEI shares. B. Riley Financial reduced their target price on American Public Education from $70.00 to $65.00 and set a "buy" rating on the stock in a research report on Wednesday, October 28th. Weiss Ratings cut shares of American Public Education from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Thursday, October 15th. Lake Street Capital boosted their target price on shares of American Public Education from $62.00 to $64.00 and gave the company a "buy" rating in a report on Tuesday, August 11th. DA Davidson upgraded shares of American Public Education to a "strong-buy" rating in a report on Monday, October 5th. Finally, Zacks Research lowered shares of American Public Education from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 11th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $59.00.

Insider Buying and Selling at American Public Education

In other news, insider James Kenigsberg sold 1,256 shares of the business's stock in a transaction dated Thursday, October 22nd. The stock was sold at an average price of $47.69, for a total transaction of $59,898.64. Following the completion of the sale, the insider owned 43,473 shares in the company, valued at approximately $2,073,227.37. The trade was a 2.81% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 10.60% of the stock is owned by corporate insiders.

American Public Education Company Profile

American Public Education, Inc NASDAQ: APEI is an education services company that provides postsecondary instruction and career-focused training through a group of institutions. Its portfolio includes American Public University System, Rasmussen University and Hondros College of Nursing.

American Public University System offers undergraduate and graduate programs primarily through online and distance-learning formats. Its institutions serve military personnel, veterans, working adults and other students, with academic offerings spanning areas such as business, public service, health care, technology, security and liberal arts.

Rasmussen University provides undergraduate and graduate education through online and campus-based programs, with a focus on health sciences, nursing, business, technology and other career-oriented fields.

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