Continuing Education, Domestic, For-Profit, Investors, Required, University & College - Written by on Wednesday, August 3, 2011 9:33 - 0 Comments

American Public Education Inc. Inspires Sector with Guidance 30% Higher YOY Q3 Earnings

photo: courtesy American Public Education

by Elbert Chu

 

 

American Public Education Inc. (NASDAQ: APEI) based in Charles Town, WV reported enrollments grew 34% year over year, compared to CPLA and STRA who have seen persistence weakness.

UBS analyst Ariel Sokol, who is bullish on APEI shares with a “Buy” rating and a $52 price target, writes:

American Public reported the cleanest quarter of any publicly traded postsecondary company that we cover this earnings season.  Enrollment growth accelerated to 34% YoY from 28%.  Revenue growth exceeded investor expectations and management guidance.  At the same time, selling & promotional costs as a percent of revenue declined YoY (rather than increased).  The bear thesis on this story for some time has been that the company would need to continually increase sales & promotional costs as a percent of revenue as it penetrated the civilian market.  The thesis did not play itself out this quarter, as selling & promotional costs declined YoY, to 16% from 17.6% in the prior year quarter.

Still, American Public Education and other for-profit companies may encounter a drag on growth if there are changes to the level of federal government assistance. Sokol writes:

On the call, management commented that the Department of Defense could potentially modify tuition assistance given austerity measures by the federal government.  Active duty service members could need to pay out of pocket, use Title IV, or other funds to cover tuition costs.

 

Full earnings numbers broken out at Reuters.

Enhanced by Zemanta


Leave a Reply

Comment

Campus Buzz


We welcome Tips & Pitches



What you need to know weekly:
The WiredAcademic newsletter.


* = required field

Latest WA Original Features






  • Twitter feed loading




Paul Glader, Managing Editor
@paulglader

Eleni Glader, Policy Editor

Elbert Chu, Innovation Editor
@elbertchu

Ravi Kumar, Reporter & Social Media Editor
@ravinepal

Derek Reed, Reporter
@derekreed

Brock Buesing, Contributor










APEI23.65  chart+0.95  chart +4.19%
APOL9.995  chart+0.000  chart +0.00%
AAPL152.74  chart+0.65  chart +0.43%
BPI13.27  chart+0.13  chart +0.99%
CAST0.0025  chart+0.0000  chart +0.00%
CECO9.20  chart-0.06  chart -0.65%
COCO0.0139  chart+0.0000  chart +0.00%
CPLA80.80  chart-7.25  chart -8.23%
DV36.90  chart-0.05  chart -0.14%
EDMC0.0069  chart+0.0016  chart +30.19%
ESI0.358  chart+0.000  chart +0.00%
GOOG950.70  chart-29.64  chart -3.02%
LINC3.23  chart+0.13  chart +4.19%
LOPE76.59  chart-0.44  chart -0.57%
PEDH0.142  chart+0.000  chart +0.00%
PSO8.28  chart-0.02  chart -0.24%
SABA8.81  chart+0.00  chart +0.00%
SCHL41.73  chart+0.02  chart +0.05%
STRA89.75  chart-1.97  chart -2.15%
WPON/A  chart+0  chartN/A
2017-07-25 16:00


Cost of Education, Domestic, Education Quality, Ethics, For-Profit, Regulatory, Required, Students, University & College - Mar 11, 2012 21:17 - 0 Comments

Heard: Senators On Warpath Against For-Profit College Military Push

More In For-Profit


Blended Learning, Domestic, Elementary / Primary / Junior, Flipped Classrooms, High school / Secondary 2, International, Open Source Education, Required, School teachers, Startups, Students, Technology - Mar 12, 2012 19:04 - 0 Comments

Big Weekend For Sal Khan; Appears On 60 Minutes & Launches Free iPad App

More In Technology


Domestic, Education Quality, For-Profit, Friend, Fraud, or Fishy, Required, University & College - Feb 10, 2012 16:36 - 0 Comments

Heard: NYC Warns Against For-Profit Adult Education Scams

More In Friend, Fraud, or Fishy