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Factors to Note Ahead of American Public's Q4 Earnings Release
APEIAmerican Public Education(APEI) ZACKS·2025-03-03 17:40

Core Viewpoint - American Public Education, Inc. (APEI) is expected to report its fourth-quarter 2024 results on March 6, with a focus on revenue growth and enrollment trends across its segments [1]. Financial Performance - In the last reported quarter, APEI's earnings per share (EPS) exceeded the Zacks Consensus Estimate by 300%, while revenues fell short by 0.3%. Year-over-year, revenues increased by 1.5% and EPS rose by 100% [2]. - The Zacks Consensus Estimate for the fourth-quarter EPS is stable at 54 cents, indicating a 15.6% decrease from the previous year's EPS of 64 cents. Revenue estimates are pegged at 161.6million,suggestinga5.7161.6 million, suggesting a 5.7% year-over-year rise [3]. Enrollment and Revenue Growth - APEI's fourth-quarter revenues are anticipated to increase due to strong performance across all segments, particularly in the American Public University System (APUS) and Hondros College of Nursing (HCN) [4]. - APUS is expected to see total net course registrations grow by 4% to 6%, driven by military-affiliated programs. HCN's enrollment is projected to rise by 19% to 3,700 students, while Rasmussen University (RU) is expected to have a 4% increase in student enrollment to 14,600 [6]. Segment Revenue Expectations - For the fourth quarter, revenues in the APUS and HCN segments are expected to increase by 2.8% to 81.6 million and by 20.6% to 19million,respectively.RUsegmentrevenuesarepredictedtogrowby5.419 million, respectively. RU segment revenues are predicted to grow by 5.4% to 55.4 million [7]. Margin and Income Projections - APEI is expected to report net income between 9millionand9 million and 11 million, down from 11.5millionayearago,translatingtoEPSbetween47centsand56cents[9].AdjustedEBITDAisprojectedtobebetween11.5 million a year ago, translating to EPS between 47 cents and 56 cents [9]. - Adjusted EBITDA is projected to be between 23 million and 26million,comparedto26 million, compared to 25.7 million a year ago, with adjusted EBITDA margins expected to decline by 70 basis points to 16.1% [9]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for APEI, as the Earnings ESP stands at 0.00% and the company holds a Zacks Rank of 3 (Hold) [10][11].