American Public's (APEI) Stock Down on Q2 Loss, Enrollment Up

American Public Education, Inc. APEI reported lackluster results in second-quarter 2022. The top and the bottom line lagged the Zacks Consensus Estimate and declined on a year-over-year basis.

American Public’s shares dropped 5.49% in the after-hours trading session on Aug 9, following tepid earnings results.

Delving Deeper

The company reported an adjusted loss of 6 cents per share versus the consensus mark of earnings of 6 cents and the year-ago quarter’s figure of 3 cents.

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 $149.6 million missed the consensus mark of $152 million by 1.7% but increased 92% from the year-ago period’s levels. The upside was backed by the acquisition of Rasmussen University (“RU”) and GSUSA. Also, the solid contribution from APUS and HCN segments added to the positives.

Total costs and expenses increased more than 282% year over year to $290.9 million due to the inclusion of RU. Adjusted EBITDA increased 47% year over year to $14.5 million.

Segment Discussion

The company now operates within three segments, namely, the American Public University System’s (“APUS”), RU and Hondros College of Nursing segment (“HCN”).

APUS: Revenues of $69.9 million rose 4% from the year-ago period’s levels. APUS’ total net course registration inched up 1% from the year-ago period’s levels to 83,500 in the second quarter, driven by strong military growth. In the quarter, military registrations were up 9% and army registrations rose 38%.

RU: The segment reported revenues of $63.9 million for the quarter. RU’s total student enrollment fell 6% from the prior-year period to 15,900 due to a 2% and 10% decline in nursing and non-nursing enrollment, respectively, thanks to a challenging broader macroeconomic environment.

HCN: Segment’s revenues rose 3% year over year to $11.5 million, owing to improved enrollment. Total student enrollment at HCN increased 3% from the prior-year quarter’s levels to 2,440.

Financials

At the second quarter-end, American Public had total cash and cash equivalents of $184.5 million compared with $149.6 million at the 2021-end.

Third-Quarter Guidance

The company expects total revenues to increase 48-51% year over year to $145.1-$148.1 million. It anticipates the bottom line within 24-31 cents per share, indicating growth from the prior-year quarter’s levels of a loss of 1 cent. Adjusted EBITDA is anticipated within $5.8-$7.7 million, suggesting a decline of 17-37% year over year.

At APUS, total net course registrations are likely to rise 0-5% year over year to 83,100-87,200. HCN’s total student enrollment is expected to increase 4% from the prior year’s tally. RU’s student enrollment will likely fall 8% from the year-ago quarter’s figure to 15,000.

Zacks Rank

APEI currently carries a Zacks Rank #3 (Hold). 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 mixed results for second-quarter 2022, with earnings surpassing the Zacks Consensus Estimate but net sales missing the same. On a year-over-year basis, net sales grew buoyed by higher pricing, enhanced product mix and improvements in commercial and acquisitions.

However, MHK’s earnings fell from a year ago due to material, energy and transportation inflation.

Strategic Education, Inc. or SEI STRA reported second-quarter 2022. Quarterly earnings and revenues missed their respective Zacks Consensus Estimate and declined on a year-over-year basis.

The downside was caused by lower contributions from all three segments of STRA.

Leggett & Platt, Incorporated LEG reported decent results in second-quarter 2022, with earnings meeting the Zacks Consensus Estimate and net sales surpassing the same. Both the metrics increased on a year-over-year basis.

Solid raw material-related selling prices helped the company generate higher sales and earnings. Yet, LEG witnessed soft volumes and currency headwinds.

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