American Public Education (APEI) Q4 Earnings Exceed Expectations, Revenue Surpasses Estimates

American Public Education (APEI) reported Q4 earnings of $0.63 per share, surpassing the Zacks Consensus Estimate of $0.54 per share. The company's revenue of $164.11 million also exceeded estimates by 1.57%. The stock has lost about 6% YTD, but its Zacks Rank of #3 (Hold) suggests it is expected to perform in line with the market in the near future. The current consensus EPS estimate is $0.31 for the coming quarter and $1.35 for the current fiscal year.

The American Public Education (APEI) company, a leading provider of online and campus-based postsecondary education and career learning, reported impressive fourth-quarter earnings results on March 6, 2025 [1]. With net income and adjusted EBITDA surpassing expectations, the company's stock, although down 6% year-to-date (YTD), maintains a Zacks Rank of #3 (Hold), suggesting it is expected to perform in line with the market in the near future [1].

APEI's consolidated revenue for Q4 2024 reached $164.1 million, a 7.4% increase from the same period in 2023 [1]. The company's net income available to common stockholders was $11.5 million, slightly below the $11.5 million reported in Q4 2023, but net income per diluted common share rose to $0.63, up from $0.64 in the previous year [1]. Adjusted EBITDA also increased significantly, from $25.7 million in Q4 2023 to $31.4 million in Q4 2024 [1].

One of the key factors contributing to APEI's strong performance was the improvement in its APUS, Rasmussen, and Hondros College of Nursing segments [1]. In Q1 2025, enrollments at Rasmussen, one of APEI's subsidiaries, increased by 6.8% compared to the same quarter in 2024 [1].

Looking ahead, APEI plans to simplify and strengthen its military and healthcare divisions by closing underperforming campuses, selling buildings, and terminating several long-term contracts [1]. These changes are expected to improve the company's long-term financial results.

Despite the positive earnings report, APEI's stock has lost about 6% YTD, potentially due to broader market trends or investor concerns about the company's financial position. However, with a solid financial foundation and positive guidance for Q1 and full-year 2025, APEI appears well-positioned to navigate any challenges that may arise.

References:
[1] American Public Education Reports Fourth Quarter and Full Year 2024 Financial Results. (2025, March 6). Retrieved from https://www.prnewswire.com/news-releases/american-public-education-reports-fourth-quarter-and-full-year-2024-financial-results-302395069.html