American Public Education, Inc. APEI reported better-than-expected fourth-quarter 2024 results, wherein adjusted earnings and revenues topped the Zacks Consensus Estimate. On a year-over-year basis, the top line grew while the bottom line tumbled.
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The quarter’s performance reflects strong contributions from the Rasmussen University (RU), American Public University System (APUS) and Hondros College of Nursing (HCN) segments. Marginal revenue growth from the Graduate School (GSUSA) segment somewhat offset this robust growth trend.
The bottom-line growth was hurt by increased total costs and expenses compared with last year.
APEI stock inched up 0.8% in Thursday’s after-hours trading session after the earnings result announcement.
APEI’s Q4 Discussion
The company reported adjusted earnings per share (EPS) of 63 cents, surpassing the Zacks Consensus Estimate of 54 cents by 16.7%. In the year-ago quarter, it reported an adjusted EPS of 64 cents.
Total revenues of $164.1 million also topped the consensus mark of $162 million by 1.6% and grew 7.4% from the year-ago period. Net course registration growth and select tuition and fee increases aided the results.
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 costs and expenses increased 4.2% year over year to $142.6 million. Adjusted EBITDA increased year over year to $31.4 million from $25.7 million. The adjusted EBITDA margin of 19.1% expanded year over year from 16.8%.
Segment Discussion of American Public
APUS: Revenues of $82.4 million rose from the year-ago period’s level of $79.4 million. The uptick was primarily due to growth in registrations and the impact of select tuition increases.
APUS’ total net course registration increased 7.1% from the year-ago period to 97,100. In the quarter, military registrations were up 2.9%. The EBITDA margin of 34.5% contracted from 38% year over year.
RU: The segment reported revenues of $57.5 million, which increased year over year from $52.6 million. This was due to growth in online enrollment and a tuition increase.
RU’s total student enrollment increased 3.5% to 14,600 due to growth in On-ground enrollment and Online enrollment. The EBITDA margin of 10% expanded 900 basis points (bps) from 1% reported in the prior year.
HCN: The segment’s revenues rose 20% year over year to $18.9 million. The increase was backed by solid growth in total student enrollment. Total student enrollment at HCN increased 19.3% from the prior-year quarter’s level to 3,700. The EBITDA margin of 6% contracted 100 bps year over year.
GSUSA: The segment’s revenues inched up year over year to $5.4 million from $5.1 million. The EBITDA margin was negative 13%, narrower than negative 22% a year ago.
American Public’s 2024 Glimpse
The full-year revenues of the company were $624.6 million, up from $600.5 million reported in 2023.
The adjusted EBITDA increased year over year to $72.3 million from $59.6 million. The adjusted EBITDA margin also expanded 200 bps to 12% from last year.
The adjusted EPS during the year was 55 cents against a loss per share of $2.93.
APEI’s Financials
As of Dec. 31, 2024, American Public had total cash, cash equivalents and restricted cash of $158.9 million, up from $144.3 million at 2023-end.
APEI Unveils Q1 Guidance
APEI expects total revenues to increase 4-6% year over year to $161-$163 million. It anticipates EPS to be between nine cents and 17 cents against a loss of six cents per share reported a year ago. Adjusted EBITDA is expected to be in the band of $13.5-$15.5 million, a decline of 21-9% year over year.
APUS’ total net course registrations are likely to be in the band of 100,500-102,000, reflecting growth between 1.5% and 3% year over year. HCN’s total enrollment is expected to increase 10% from the prior year’s figure to 3,600 students.
RU’s student enrollment is expected to be up 7% year over year to 14,500. On-ground healthcare enrollment is likely to increase 3% to 6,500 and online enrollment is expected to rise 11% year over year to 8,000.
APEI’s 2025 Guidance
Total revenues are expected to grow 4-6% year over year to $650-$660 million. Adjusted EBITDA is expected to be between $75 and $85 million, reflecting 4-18% growth year over year.
Capital expenditures are expected to be in the band of $18-$22 million, reflecting a decline of 14% to growth of 4%.
APEI’s Zacks Rank & Peer Releases
APEI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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