American Public Education Stock Falls 4.4% Since August 13

Alex Hamilton  |

American Public Education, Inc. (APEI) stock is down 4.4% in the past 30 days. The education services provider’s stock is up nearly 27% year-to-date, but the stock has dropped 24.9% since August 8.

The company’s stock is in a slump due to Q2 2018 results which showed sluggish revenue that increased just 1% compared to the same period a year prior, rising from $72.2 million to $72.8 million. Net income performed better, rising from $3.8 million to $6.5 million year-to-date and earnings-per-share rising from $0.23 to $0.39.

American Public Education course registrations are down less than 1% year-over-year, as student enrollment fell to 81,100 students, down 4% year-over-year.

The company’s earnings still outpaced estimates, but investor sentiment remains low, as the company’s financials are less than impressive. The company will participate in the 18th annual, back to school education conference in New York City. The company’s President and Chief Executive Officer, Dr. Wallace E. Boston will be a key speaker. Dr. Boston will also be answering questions from the financial community.

Dr. Boston will be speaking to the audience on September 13, 2018 at 11:45am EST.

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The company’s performance is due primarily to strong growth in the company’s online programs and affordable courses where students can take entire courses, write an essay, take tests online and do it all on their own time.

The company’s stock, while down year-to-date, still remains up 73.4% between September 19, 2017 and September 12, 2018. The company’s rally is outpacing the industry, which has fallen over 6% in the last year.American Public University System, Inc. (APUS), a subsidiary of the company, offers the 21st lowest tuition and the 14 lowest net prices for a private-for-profit institution.

Online post-secondary education remains a strong revenue driver, offering opportunities to the military and public service communities. The programs are designed for the unpredictable schedules of military personnel, allowing for coursework to be completed on a schedule that meets the student’s schedule.

Hondros College, Nursing programs, also a subsidiary of the company, experienced a 17% rise in total student enrollment in the second-quarter. Nursing is a field that is in high demand, with many students choosing the nursing field for job security.

Softness in military tuition assistance and Federal Student Aid enrollment is a major concern for the industry. The company’s enrollment of students that entered the school with Federal Student Aid fell 13.4% year-over-year.

Third-quarter revenues are expected to decrease between 3% and 0% year-over-year.

DISCLOSURE: The author does not have any stake in the listed equities

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