We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
American Public (APEI) to Report Q2 Earnings: What to Expect?
Read MoreHide Full Article
American Public Education, Inc. (APEI - Free Report) is slated to release second-quarter 2023 results on Aug 8 after market close.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 15.6% while revenues missed the same by 1.1%. On a year-over-year basis, a loss of 38 cents per share was reported in the first quarter while earnings of 12 cents per share were reported in the year-ago quarter. Revenues also decreased 3.3%.
American Public’s earnings topped the consensus mark in two of the trailing four quarters and missed on other two occasions, the average negative surprise being 53.6%.
Trend in Estimate Revision
The Zacks Consensus Estimate for second-quarter 2023 portrays an adjusted loss of 31 cents per share, which has remained unchanged over the past 60 days. The estimated figure is wider than the year-ago quarter’s reported loss of 6 cents per share.
American Public Education, Inc. Price and EPS Surprise
For revenues, the consensus mark is pegged at $146.24 million, suggesting a 2.3% year-over-year decline.
Key Factors to Consider
Enrollments & Revenues
American Public’s second-quarter revenues are likely to have declined due to year-over-year lower contribution from Rasmussen University or the RU segment (accounted for 38.4% of total Q1 2023 revenues). The decline is likely to have stemmed from restricted admission policies and enrollment caps in Illinois and the Twin Cities. APEI expects total revenues to decline within 3-1% year over year to $145.5-$147.5 million in the to-be-reported quarter.
For second-quarter 2023, the company expects student enrollment in the RU segment to decline 12% year over year to approximately 13,900 students. Also, nursing and non-nursing student enrollments are expected to decline 22% to 6,400 students and 3% to 7,500 students, year over year.
For the quarter, our model predicts the RU segment’s revenues to decline 13.2% to $55.5 million year over year.
The aforementioned headwinds to the quarter’s revenues are likely to have been offset by higher net course registrations in American Public University System segment or APUS (accounted for 49.4% of total Q1 2023 revenues) and increased total enrollment in Hondros College of Nursing segment or HCN (accounted for 8.8% of total Q1 2023 revenues), year over year.
The company expects the APUS segment’s total net course registrations to be 85,300-88,700, reflecting growth of 2-6% year over year. HCN segment’s total enrollment is expected to increase 22% from the prior year’s figure to an all-time high of 3,000 students.
For the second quarter, we expect revenues in the APUS and HCN segments to increase 2% to $71.3 million and 23.3% to $14.2 million, respectively, year over year.
Margins
Meanwhile, the company is expected to witness a huge loss, most likely due to the fixed-cost campus-based operating model of the RU segment and ongoing inflationary pressures. Also, higher instructional costs and services, selling and promotional expenses and general and administrative expenditures are likely to have put pressure on the company’s margins.
The company anticipates an adjusted loss of 36-28 cents per share in the second quarter. Adjusted EBITDA is expected to be within $4.4-$6.4 million, suggesting a decline of 56-70% year over year.
For the to-be-reported quarter, we expect adjusted EBITDA margins to decline 640 basis points (bps) to 3.3% year over year. Also, the gross margin is expected to decline 160 bps to 50.2% year over year.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for American Public this time around. The company does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: APEI has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 2.
Stocks With the Favorable Combination
Here are some companies in the Zacks Consumer Discretionary sector, which according to our model, have the right combination of elements to post an earnings beat for their respective quarters to be reported.
WYNN’s earnings for the to-be-reported quarter are expected to increase 162.2%. The company reported better-than-expected earnings in two of the trailing four quarters, missed the mark once and remained flat on the remaining one occasion, the average surprise being 67.2%.
The Honest Company, Inc. (HNST - Free Report) has an Earnings ESP of +18.52% and a Zacks Rank of 2.
HNST’s earnings for the to-be-reported quarter are expected to decline 27.3%. The company missed earnings estimates in the last four quarters, the average negative surprise being 61.5%.
SciPlay Corporation has an Earnings ESP of +10.53% and a Zacks Rank of 2.
SCPL is expected to register a 17.4% increase in earnings for the to-be-reported quarter. Notably, the company reported better-than-expected earnings in one of the trailing four quarters, missed the mark twice and remained flat on the remaining one occasion, the average negative surprise being 0.8%.
Image: Bigstock
American Public (APEI) to Report Q2 Earnings: What to Expect?
American Public Education, Inc. (APEI - Free Report) is slated to release second-quarter 2023 results on Aug 8 after market close.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 15.6% while revenues missed the same by 1.1%. On a year-over-year basis, a loss of 38 cents per share was reported in the first quarter while earnings of 12 cents per share were reported in the year-ago quarter. Revenues also decreased 3.3%.
American Public’s earnings topped the consensus mark in two of the trailing four quarters and missed on other two occasions, the average negative surprise being 53.6%.
Trend in Estimate Revision
The Zacks Consensus Estimate for second-quarter 2023 portrays an adjusted loss of 31 cents per share, which has remained unchanged over the past 60 days. The estimated figure is wider than the year-ago quarter’s reported loss of 6 cents per share.
American Public Education, Inc. Price and EPS Surprise
American Public Education, Inc. price-eps-surprise | American Public Education, Inc. Quote
For revenues, the consensus mark is pegged at $146.24 million, suggesting a 2.3% year-over-year decline.
Key Factors to Consider
Enrollments & Revenues
American Public’s second-quarter revenues are likely to have declined due to year-over-year lower contribution from Rasmussen University or the RU segment (accounted for 38.4% of total Q1 2023 revenues). The decline is likely to have stemmed from restricted admission policies and enrollment caps in Illinois and the Twin Cities. APEI expects total revenues to decline within 3-1% year over year to $145.5-$147.5 million in the to-be-reported quarter.
For second-quarter 2023, the company expects student enrollment in the RU segment to decline 12% year over year to approximately 13,900 students. Also, nursing and non-nursing student enrollments are expected to decline 22% to 6,400 students and 3% to 7,500 students, year over year.
For the quarter, our model predicts the RU segment’s revenues to decline 13.2% to $55.5 million year over year.
The aforementioned headwinds to the quarter’s revenues are likely to have been offset by higher net course registrations in American Public University System segment or APUS (accounted for 49.4% of total Q1 2023 revenues) and increased total enrollment in Hondros College of Nursing segment or HCN (accounted for 8.8% of total Q1 2023 revenues), year over year.
The company expects the APUS segment’s total net course registrations to be 85,300-88,700, reflecting growth of 2-6% year over year. HCN segment’s total enrollment is expected to increase 22% from the prior year’s figure to an all-time high of 3,000 students.
For the second quarter, we expect revenues in the APUS and HCN segments to increase 2% to $71.3 million and 23.3% to $14.2 million, respectively, year over year.
Margins
Meanwhile, the company is expected to witness a huge loss, most likely due to the fixed-cost campus-based operating model of the RU segment and ongoing inflationary pressures. Also, higher instructional costs and services, selling and promotional expenses and general and administrative expenditures are likely to have put pressure on the company’s margins.
The company anticipates an adjusted loss of 36-28 cents per share in the second quarter. Adjusted EBITDA is expected to be within $4.4-$6.4 million, suggesting a decline of 56-70% year over year.
For the to-be-reported quarter, we expect adjusted EBITDA margins to decline 640 basis points (bps) to 3.3% year over year. Also, the gross margin is expected to decline 160 bps to 50.2% year over year.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for American Public this time around. The company does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: APEI has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 2.
Stocks With the Favorable Combination
Here are some companies in the Zacks Consumer Discretionary sector, which according to our model, have the right combination of elements to post an earnings beat for their respective quarters to be reported.
Wynn Resorts, Limited (WYNN - Free Report) has an Earnings ESP of +47.78% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
WYNN’s earnings for the to-be-reported quarter are expected to increase 162.2%. The company reported better-than-expected earnings in two of the trailing four quarters, missed the mark once and remained flat on the remaining one occasion, the average surprise being 67.2%.
The Honest Company, Inc. (HNST - Free Report) has an Earnings ESP of +18.52% and a Zacks Rank of 2.
HNST’s earnings for the to-be-reported quarter are expected to decline 27.3%. The company missed earnings estimates in the last four quarters, the average negative surprise being 61.5%.
SciPlay Corporation has an Earnings ESP of +10.53% and a Zacks Rank of 2.
SCPL is expected to register a 17.4% increase in earnings for the to-be-reported quarter. Notably, the company reported better-than-expected earnings in one of the trailing four quarters, missed the mark twice and remained flat on the remaining one occasion, the average negative surprise being 0.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.