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American Public (APEI) Q2 Earnings Meet Estimates, Margins Rise
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American Public Education, Inc. (APEI - Free Report) reported second-quarter 2024, wherein earnings met the Zacks Consensus Estimate and significantly improved from the previous year.
Revenues marginally missed the analysts’ expectations but increased year over year on the back of contributions from the American Public University System (“APUS”), Hondros College of Nursing (“HCN”) and Rasmussen University ("RU") segments. Yet, lower revenues from Graduate School ("GSUSA") partially offset the growth.
The company has been benefiting from consistent enrollment growth at APUS and HCN, along with improvement at Rasmussen. Also, select tuition and fee increases, combined with the positive impact of cost reductions and realignments, added to the growth.
Delving Deeper
The company reported an adjusted earnings per share (EPS) of 1 cent against the year-ago quarter’s loss of 25 cents. The metric came in line with the Zacks Consensus Estimate.
American Public Education, Inc. Price, Consensus and EPS Surprise
Total revenues of $152.9 million missed the consensus mark of $154 million by 0.8% but grew 3.9% from the year-ago period. Net course registration increases and select tuition and fee increases implemented in 2023 and 2024 aided the results.
Total costs and expenses decreased 29.1% year over year to $150.7 million. Adjusted EBITDA increased 24% year over year to $10.9 million. Adjusted EBITDA margin of 7% expanded from 6% year over year.
Segment Discussion
APUS: Revenues of $77 million rose 5% from the year-ago period’s levels. The uptick was primarily due to growth in registrations and the impact of select tuition increases in 2023.
APUS’ total net course registration increased 1.7% from the year-ago period to 89,800. In the quarter, military registrations were up 1%. Adjusted EBITDA margin of 25% contracted from 28% year over year, driven by higher enrollment, select price increases, and lower marketing spend.
RU: The segment reported revenues of $53 million for the quarter, up 2% from a year ago. This was due to growth in online enrollment and an increase in tuition.
RU’s total student enrollment fell 2.2% to 13,600 due to a 9% decline in On-ground enrollment but a 4% increase in Online enrollment. Adjusted EBITDA margin of negative 9% narrowed from negative 14% reported in the prior year due to a stabilizing environment and first positive enrollment comp since acquisition.
HCN: The segment’s revenues rose 15% year over year to $16.4 million. The increase was backed by solid growth in total student enrollment. Total student enrollment at HCN increased 9.4% from the prior-year quarter’s levels to 3,300. Adjusted EBITDA margin was negative 2% versus 1% reported a year ago.
GSUSA: The segment’s revenues decreased 14% year over year to $6.4 million impacted by government spending uncertainty. Adjusted EBITDA margin came in at negative 11% against 11% a year ago.
Financials
At the end of the second quarter, American Public had total cash, cash equivalents, and restricted cash of $156.2 million, up from $144.3 million at 2023-end.
Q3 Guidance
APEI expects total revenues to increase 1-3% year over year to $152-$155 million. It anticipates EPS between a loss of 6 cents and an earnings of 5 cents versus a loss of 25 cents per share reported a year ago. Adjusted EBITDA is expected to be within $9-$12 million, a decline of 34-56% year over year.
APUS’ total net course registrations are likely to be 90,500-92,300, reflecting a flat to 2% decline year over year. HCN’s total enrollment is expected to increase 10% from the prior year’s figure to 3,100 students.
RU’s student enrollment is expected to be up 0.1% from the year-ago quarter’s figure of 13,500. Nursing student enrollment is likely to decline 6% to 6,030, while non-nursing student enrollment is expected to rise 4% to 7,440 year over year.
2024 Guidance Maintained
Total revenues are expected to grow 3-5% year over year to $620-$630 million. Adjusted EBITDA is expected to be between $60 and $70 million, reflecting 1-17% growth year over year.
Capital expenditures are still expected to be in the range of $17-$20 million, reflecting 22-44% growth.
Strategic Education, Inc. (STRA - Free Report) , or SEI, reported stellar results in second-quarter 2024. Its quarterly earnings and revenues topped the Zacks Consensus Estimate and increased year over year.
The quarterly results reflect solid growth across the company’s three reportable segments, attributable to continued enrollment growth in the U.S. Higher Education segment, especially employer-affiliated enrollments, and total enrollment improvement in the Australia/New Zealand segment. Moreover, the Education Technology Services segment portrayed solid performance, mainly driven by the growth in Sophia Learning subscriptions.
Leggett & Platt, Incorporated (LEG - Free Report) reported lackluster results for second-quarter 2024. Earnings matched the analysts’ expectations, while net sales missed the same. The metrics declined on a year-over-year basis due to persistent weak demand in most of the end markets served.
For the full year, LEG lowered sales guidance and narrowed adjusted EPS guidance. The company noted that demand in the residential end markets remains weak as consumers continue to delay big-ticket, discretionary purchases. Also, the global automotive market remains volatile due to a slower-than-expected shift to electric vehicles and disruption from new Chinese market entrants.
Mohawk Industries, Inc. (MHK - Free Report) reported mixed results for the second quarter of 2024 (ended Jun 29). Its earnings surpassed the Zacks Consensus Estimate and improved year over year.
On the other hand, net sales declined on a year-over-year basis and missed the consensus mark.
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American Public (APEI) Q2 Earnings Meet Estimates, Margins Rise
American Public Education, Inc. (APEI - Free Report) reported second-quarter 2024, wherein earnings met the Zacks Consensus Estimate and significantly improved from the previous year.
Revenues marginally missed the analysts’ expectations but increased year over year on the back of contributions from the American Public University System (“APUS”), Hondros College of Nursing (“HCN”) and Rasmussen University ("RU") segments. Yet, lower revenues from Graduate School ("GSUSA") partially offset the growth.
The company has been benefiting from consistent enrollment growth at APUS and HCN, along with improvement at Rasmussen. Also, select tuition and fee increases, combined with the positive impact of cost reductions and realignments, added to the growth.
Delving Deeper
The company reported an adjusted earnings per share (EPS) of 1 cent against the year-ago quarter’s loss of 25 cents. The metric came in line with the Zacks Consensus Estimate.
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 $152.9 million missed the consensus mark of $154 million by 0.8% but grew 3.9% from the year-ago period. Net course registration increases and select tuition and fee increases implemented in 2023 and 2024 aided the results.
Total costs and expenses decreased 29.1% year over year to $150.7 million. Adjusted EBITDA increased 24% year over year to $10.9 million. Adjusted EBITDA margin of 7% expanded from 6% year over year.
Segment Discussion
APUS: Revenues of $77 million rose 5% from the year-ago period’s levels. The uptick was primarily due to growth in registrations and the impact of select tuition increases in 2023.
APUS’ total net course registration increased 1.7% from the year-ago period to 89,800. In the quarter, military registrations were up 1%. Adjusted EBITDA margin of 25% contracted from 28% year over year, driven by higher enrollment, select price increases, and lower marketing spend.
RU: The segment reported revenues of $53 million for the quarter, up 2% from a year ago. This was due to growth in online enrollment and an increase in tuition.
RU’s total student enrollment fell 2.2% to 13,600 due to a 9% decline in On-ground enrollment but a 4% increase in Online enrollment. Adjusted EBITDA margin of negative 9% narrowed from negative 14% reported in the prior year due to a stabilizing environment and first positive enrollment comp since acquisition.
HCN: The segment’s revenues rose 15% year over year to $16.4 million. The increase was backed by solid growth in total student enrollment. Total student enrollment at HCN increased 9.4% from the prior-year quarter’s levels to 3,300. Adjusted EBITDA margin was negative 2% versus 1% reported a year ago.
GSUSA: The segment’s revenues decreased 14% year over year to $6.4 million impacted by government spending uncertainty. Adjusted EBITDA margin came in at negative 11% against 11% a year ago.
Financials
At the end of the second quarter, American Public had total cash, cash equivalents, and restricted cash of $156.2 million, up from $144.3 million at 2023-end.
Q3 Guidance
APEI expects total revenues to increase 1-3% year over year to $152-$155 million. It anticipates EPS between a loss of 6 cents and an earnings of 5 cents versus a loss of 25 cents per share reported a year ago. Adjusted EBITDA is expected to be within $9-$12 million, a decline of 34-56% year over year.
APUS’ total net course registrations are likely to be 90,500-92,300, reflecting a flat to 2% decline year over year. HCN’s total enrollment is expected to increase 10% from the prior year’s figure to 3,100 students.
RU’s student enrollment is expected to be up 0.1% from the year-ago quarter’s figure of 13,500. Nursing student enrollment is likely to decline 6% to 6,030, while non-nursing student enrollment is expected to rise 4% to 7,440 year over year.
2024 Guidance Maintained
Total revenues are expected to grow 3-5% year over year to $620-$630 million. Adjusted EBITDA is expected to be between $60 and $70 million, reflecting 1-17% growth year over year.
Capital expenditures are still expected to be in the range of $17-$20 million, reflecting 22-44% growth.
Zacks Rank & Recent Consumer Discretionary Releases
APEI currently sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Strategic Education, Inc. (STRA - Free Report) , or SEI, reported stellar results in second-quarter 2024. Its quarterly earnings and revenues topped the Zacks Consensus Estimate and increased year over year.
The quarterly results reflect solid growth across the company’s three reportable segments, attributable to continued enrollment growth in the U.S. Higher Education segment, especially employer-affiliated enrollments, and total enrollment improvement in the Australia/New Zealand segment. Moreover, the Education Technology Services segment portrayed solid performance, mainly driven by the growth in Sophia Learning subscriptions.
Leggett & Platt, Incorporated (LEG - Free Report) reported lackluster results for second-quarter 2024. Earnings matched the analysts’ expectations, while net sales missed the same. The metrics declined on a year-over-year basis due to persistent weak demand in most of the end markets served.
For the full year, LEG lowered sales guidance and narrowed adjusted EPS guidance. The company noted that demand in the residential end markets remains weak as consumers continue to delay big-ticket, discretionary purchases. Also, the global automotive market remains volatile due to a slower-than-expected shift to electric vehicles and disruption from new Chinese market entrants.
Mohawk Industries, Inc. (MHK - Free Report) reported mixed results for the second quarter of 2024 (ended Jun 29). Its earnings surpassed the Zacks Consensus Estimate and improved year over year.
On the other hand, net sales declined on a year-over-year basis and missed the consensus mark.