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American Public Education Inc (NASDAQ:APEI): What Are The Future Prospects?

American Public Education Inc’s (NASDAQ:APEI) most recent earnings announcement in December 2017 suggested that the company faced a immense headwind with earnings deteriorating by -12.56%. Below is a brief commentary on my key takeaways on how market analysts predict American Public Education’s earnings growth trajectory over the next few years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. Check out our latest analysis for American Public Education

Market analysts’ prospects for the upcoming year seems positive, with earnings rising by a robust 20.29%. This growth seems to continue into the following year with rates arriving at double digit 32.97% compared to today’s earnings, and finally hitting US$29.97M by 2021.

NasdaqGS:APEI Future Profit May 8th 18
NasdaqGS:APEI Future Profit May 8th 18

Although it is helpful to be aware of the growth year by year relative to today’s figure, it may be more beneficial to determine the rate at which the earnings are growing every year, on average. The benefit of this technique is that we can get a bigger picture of the direction of American Public Education’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I’ve appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 11.98%. This means that, we can assume American Public Education will grow its earnings by 11.98% every year for the next few years.

Next Steps:

For American Public Education, I’ve put together three fundamental aspects you should further research:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

  2. Valuation: What is APEI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether APEI is currently mispriced by the market.

  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of APEI? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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