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

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American Public Education, Inc. APEI 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 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 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 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 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.


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