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.

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


The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.

Companies

Symbol Name Price Change % Volume
APEI American Public Education Inc. 26.91 0.39 1.45 71,406 Trade

Comments

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
GOOG

     
XOM

     
BRK.A

     
FB

     
JNJ

     
WFC

     
T

     
NFLX

     
TSLA

     
V

     
UNH

     
PG

     

World Economic Forum at Davos 2019 - Ben Yablon Executive VP Salt Lending

Matt Bird sits down with Ben Yablon - Executive VP of Salt Lending - at the World Economic Forum in Davos January 2019