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American Public Education (APEI) Beats Q1 Earnings Estimates

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American Public Education, Inc. APEI reported first-quarter 2018 earnings per share of 35 cents, beating the Zacks Consensus Estimate of 34 cents. Adjusted earnings in the year-ago quarter were 28 cents.

Revenues and Enrollment

Total revenues of $75 million met the Zacks Consensus Estimate. Also, revenues fell 1% year over year, thanks to lower contribution from the American Public Education segment (“APEI”).

The company operates through two segments — American Public Education segment and Hondros College, Nursing Programs (“HCN”).

APEI primarily includes operations of American Military University and American Public University. Together, they are referred to as American Public University System (“APUS”).

Revenues declined 3.6% to $65.7 million due to a fall in net course registrations.

During the quarter, total net course registration at APUS declined 4% year over year and net course registrations by new students fell 11%. Student enrollment at APUS declined 5% year over year as of Mar 31, 2018.

Hondros College of Nursing revenues rose to $9.3 million in the first quarter compared with $7.6 million in the prior-year quarter owing to higher new enrollments.

Total enrollment in the Hondros College Nursing Programs increased 19% year over year to 2,040 students and new student enrollment rose 11% year over year.

Inside the Headline Numbers

Income from operations before interest income and income taxes was $6.2 million compared with $8.3 million in the prior-year quarter.

Total costs and expenses increased 2.1% year over year to $68.8 million in the quarter.

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


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


As of Mar 31, 2018, total cash and cash equivalents were approximately $186.2 million, compared with $179.2 million as of Dec 31, 2017. Capital expenditures were approximately $1.4 million in 2017, down from $1.7 million a year ago.

Q2 Guidance

Total revenues are expected to remain flat or rise up to 2% year over year.

The company expects earnings in the range of 29-34 cents per share.

At APUS, net course registrations by new students are expected to decline 8-3% on a year-over-year basis. Net course registrations are likely to be between a 2% decrease and a 2% increase year over year.

Zacks Rank

American Public Education carries a Zacks Rank #2 (Buy). You can the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

Strayer Education Inc. STRA reported first-quarter 2018 adjusted earnings of $1.23 per share, beating the Zacks Consensus Estimate of $1.11 by 10.8%. However, earnings improved 29.5% year over year.

Capella Education Company CPLA reported adjusted earnings of $1.20 per share in the first quarter of 2018, beating the Zacks Consensus Estimate of $1.16 by 3.5%. In the year-ago quarter, earnings were 94 cents.

Adtalem Global Education Inc. ATGE reported third-quarter fiscal 2018 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same.

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