American Public Education (APEI) Beats Q4 Earnings Estimates

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American Public Education, Inc. APEI reported fourth-quarter 2017 earnings per share of 51 cents, beating the Zacks Consensus Estimate of 33 cents by 54.5%. Adjusted earnings in the year-ago quarter were 42 cents.

Revenues and Enrollment

Total revenues of $78.1 million surpassed the Zacks Consensus Estimate of $76.3 million by 2.4%. However, revenues fell 1% year over year, thanks to lower contribution from American Public University System.

The company operates through two segments - American Public Education Segment or APEI 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 4.5% to $67.9 million from $71.1 million in the prior-year quarter due to a fall in net course registrations.

During the quarter, total net course registration at APUS declined 3% year over year, while net course registrations by new students fell 4% during the period.

In the fourth quarter of 2017, net course registrations by none of the students using Federal Student Aid (FSA) were better than anticipated.

Net course registrations by new students utilizing military tuition assistance or TA were flat year-over-year. Veteran benefits or VA increased 7% year over year.

Hondros College of Nursing revenues rose 34.7% to $10.2 million from the prior-year quarter owing to higher new enrollments.

Total enrollment at the Hondros College Nursing Programs increased 23% year over year to 2,110 students, while new student enrollment rose 29% 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. Quote

Inside the Headline Numbers

Income from operations before interest income and income taxes was $12.6 million, compared with $11.3 million in the prior-year quarter.

Total costs and expenses fell 2.8% year over year to $65.5 million in the quarter.


As of Dec 31, 2017, total cash and cash equivalents were approximately $179.2 million, compared with $146.4 million as of Dec 31, 2016. Capital expenditures were approximately $10.9 million in 2017, down from $13.8 million a year ago.

First-Quarter 2017 Guidance

Total revenues are projected in the range of down 3% to up 1% 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 9-12% on a year-over-year basis. Net course registrations are likely to fall 3-5%.

Zacks Rank

American Public Education carries a Zacks Rank #3 (Hold). You can the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Peer Release

Adtalem Global Education Inc. ATGE reported second-quarter fiscal 2018 results with earnings surpassing the Zacks Consensus Estimate, while revenues missing the same. Earnings and revenues increased 18.8% and 1%, respectively. Revenues increased across all operating segments except U.S. Traditional Postsecondary segment.

Upcoming Peer Releases

Strayer Education STRA is expected to report fourth-quarter 2017 results on Mar 2. The Zacks Consensus Estimate for earnings is pegged at $1.28, up 34.7% year over year.

Capella Education CPLA is scheduled to report fourth-quarter 2017 results on Mar 1. The Zacks Consensus Estimate for earnings is pegged at 1 cent, up 3.1% year over year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Earnings , Stocks
Referenced Symbols: APEI , STRA , ATGE

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