Core Insights - American Public Education (APEI) is set to announce its second-quarter 2025 results on August 6, after market close, with previous quarter earnings and revenues exceeding Zacks Consensus Estimates by 173.3% and 1.6% respectively [1] Financial Performance - APEI's earnings have surpassed consensus estimates in three of the last four quarters, with an average surprise of 122.5% [2] - For the upcoming quarter, the Zacks Consensus Estimate for loss per share has widened to seven cents from six cents, indicating an 800% decline from the previous year's earnings of one cent per share [3] - Revenue expectations for the second quarter are pegged at $161 million, reflecting a year-over-year growth of 5.3% [3] Revenue Drivers - The anticipated revenue growth is attributed to strong market trends in nursing and healthcare education programs, alongside increased demand for healthcare professionals [4] - APEI expects net course registrations for the American Public University System (APUS) to rise by 4% to 7%, totaling between 93,500 and 96,100 [5] - Enrollment in the Hondros College of Nursing (HCN) is projected to grow by 14% to 3,700, while Rasmussen University (RU) is expected to see an 8% increase to 14,600 [5] Revenue Projections - Total revenues for the quarter are expected to increase by 4% to 5%, reaching between $160 million and $162 million [6] - Revenue from the APUS segment is anticipated to rise by 2.8% year-over-year to $79.2 million, while RU and HCN segments are expected to grow by 7.2% to $56.9 million and 10.9% to $18.2 million respectively [6] Margin Expectations - Despite revenue growth, margins may be compressed due to higher employee compensation and marketing costs [9] - Adjusted EBITDA is projected to grow between 6% and 28%, reaching $11.5 million to $14 million [11] - Total costs and expenses are expected to rise by 3.9% year-over-year to $156.5 million, with gross margin anticipated to decline by 30 basis points to 49.9% [11] Challenges - Challenges in graduate school performance due to shifting federal priorities and policies may impact quarterly results, although market tailwinds and internal capabilities are expected to mitigate these effects [7]

Company Overview - American Public Education, Inc. (APEI) is a leading education services provider offering innovative and affordable educational programs through its subsidiaries [3][4] - The company serves approximately 88,000 adult learners worldwide, focusing on accessible higher education [4] Subsidiaries and Services - American Public University System (APUS) is a key subsidiary, primarily serving active-duty military and veteran students [4] - Rasmussen University, with a history of 125 years, focuses on nursing and health sciences, serving around 13,500 students across 20 campuses [5] - Hondros College of Nursing is the largest educator of Practical Nursing (LPN) nurses in Ohio, with approximately 3,100 students [6] - Graduate School USA provides training to the federal workforce through customized contract training and open enrollment programs [7] Accreditation - APUS and Rasmussen University are accredited by the Higher Learning Commission (HLC) [8] - Hondros College is accredited by the Accrediting Bureau of Health Education Schools (ABHES) [8] - Graduate School USA is accredited by the Accrediting Council for Continuing Education & Training (ACCET) [8] Upcoming Financial Results - APEI will hold a conference call on August 6, 2025, at 5:00 PM Eastern Time to discuss its financial results for the second quarter ended June 30, 2025 [1][2]

Core Insights - Investors in the Schools sector may consider American Public Education (APEI) and Lincoln Educational Services Corporation (LINC) as potential stocks for investment [1] - APEI currently holds a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to LINC, which has a Zacks Rank of 3 (Hold) [3] Valuation Metrics - APEI has a forward P/E ratio of 22.31, while LINC's forward P/E is significantly higher at 31.46 [5] - The PEG ratio for APEI is 1.49, suggesting a more favorable valuation in relation to its expected EPS growth, compared to LINC's PEG ratio of 2.10 [5] - APEI's P/B ratio stands at 2.12, indicating a better market value relative to its book value than LINC's P/B ratio of 4.03 [6] Value Grades - APEI has received a Value grade of A, while LINC has a Value grade of D, reflecting APEI's superior valuation metrics and earnings outlook [6][7]

Core Points - The American Public University System (APUS) has recognized high-achieving students through its President's List for the second quarter of 2025, highlighting academic excellence and determination [1][2][3] - APUS President Nuno Fernandes expressed pride in the students' accomplishments, which reflect discipline and drive, and emphasized the importance of supporting their educational aspirations [2][4] - The President's List is published quarterly, showcasing students who meet exceptional academic standards and serve as inspirations to others [2][3] Company Overview - APUS, which includes American Military University (AMU) and American Public University (APU), has a 34-year history and a community of over 155,000 alumni from more than 80 countries [4][5] - The institution is recognized for its innovative approach to online learning and ranks in the top 22% for students' return on educational investment among 4,396 colleges and universities nationwide [4][6] - APUS is accredited by the Higher Learning Commission (HLC) and has been certified as a Great Place to Work® [5][6]

Core Viewpoint - American Public Education, Inc. (APEI) is enhancing its financial position and simplifying its capital structure through recent actions, which are expected to benefit students and shareholders alike [5]. Financial Actions - APEI completed the redemption of all outstanding shares of its Series A Senior Preferred Stock for a total cash consideration of $44.5 million, which includes $1.4 million in accrued and unpaid dividends [2]. - The Department of Education released Rasmussen University's $24.5 million letter of credit, allowing the amount to be classified as unrestricted cash [3]. - APEI sold two corporate administrative office buildings in Charles Town, WV, for total sales proceeds of $22.4 million, with these assets previously classified as "held for sale" [4]. Institutional Overview - APEI serves over 125,000 students through its four subsidiary institutions, which include American Public University System, Rasmussen University, Hondros College of Nursing, and Graduate School USA [1][5]. - American Public University System (APUS) is a leading educator for active-duty military and veteran students, serving approximately 88,000 adult learners globally [6]. - Rasmussen University focuses on nursing and health sciences, serving around 14,600 students across 20 campuses and online [7]. - Hondros College of Nursing is the largest educator of Practical Nurses in Ohio, with approximately 3,700 students [8]. - Graduate School USA provides training to the federal workforce, offering customized contract training and open enrollment programs [9]. Accreditation - APUS and Rasmussen University are accredited by the Higher Learning Commission, while Hondros College is accredited by the Accrediting Bureau of Health Education Schools, and Graduate School USA is accredited by the Accrediting Council for Continuing Education & Training [10].

Core Viewpoint - Investors in the Schools sector should consider American Public Education (APEI) and Grand Canyon Education (LOPE) as potential undervalued stocks [1] Valuation Metrics - APEI has a forward P/E ratio of 20.95, while LOPE has a forward P/E of 21.55 [5] - APEI's PEG ratio is 1.40, compared to LOPE's PEG ratio of 1.44 [5] - APEI's P/B ratio is 1.99, significantly lower than LOPE's P/B of 6.87 [6] Investment Grades - Both APEI and LOPE have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions [3] - APEI holds a Value grade of A, while LOPE has a Value grade of C, suggesting APEI is the superior value option [6][7]

Company Performance - Afya (AFYA) has returned 8.5% year-to-date, outperforming the average gain of 5.3% in the Consumer Discretionary sector [4] - The Zacks Consensus Estimate for Afya's full-year earnings has increased by 8.2% over the past three months, indicating improved analyst sentiment and a stronger earnings outlook [4] Industry Context - Afya is part of the Schools industry, which consists of 17 companies and currently ranks 19 in the Zacks Industry Rank [6] - The Schools industry has gained an average of 2.8% so far this year, showing that Afya is performing better than its industry peers [6] Sector Ranking - The Consumer Discretionary group is ranked 10 within the Zacks Sector Rank, which evaluates 16 different sector groups [2] - Afya holds a Zacks Rank of 1 (Strong Buy), indicating a favorable outlook compared to other stocks in the sector [3]

Core Viewpoint - The article emphasizes the importance of value investing and highlights specific companies, Afya (AFYA) and American Public Education (APEI), as strong value stock opportunities based on their financial metrics and rankings [2][4][7]. Company Analysis: Afya (AFYA) - Afya (AFYA) holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The stock has a P/E ratio of 11.03, significantly lower than the industry average of 15.82, suggesting it may be undervalued [4]. - AFYA's Forward P/E has fluctuated between 7.81 and 12.39 over the past year, with a median of 9.41 [4]. - The PEG ratio for AFYA is 0.59, compared to the industry average of 0.72, indicating favorable growth expectations relative to its price [5]. - AFYA's P/B ratio stands at 2.27, lower than the industry average of 3.38, further supporting its valuation as attractive [6]. Company Analysis: American Public Education (APEI) - American Public Education (APEI) has a Zacks Rank of 2 (Buy) and a Value score of A, making it another appealing option for value investors [7]. - APEI's Forward P/E ratio is 17.26, which is higher than the industry average of 15.82, suggesting a different valuation perspective [7]. - The PEG ratio for APEI is 1.15, indicating it may be priced higher relative to its growth expectations compared to the industry average of 0.72 [7]. - APEI's P/B ratio is 1.95, also lower than the industry average of 3.38, indicating it may be undervalued [8]. Summary of Valuation Metrics - Both AFYA and APEI exhibit strong value metrics, suggesting they are likely undervalued in the current market [9]. - The analysis of earnings outlook and valuation ratios positions AFYA and APEI as impressive value stocks at this time [9].

Core Insights - American Public University System (APUS) has been certified as a Great Place to Work®, reflecting high employee satisfaction and engagement [1][2][3] - The certification indicates APUS's commitment to fostering a vibrant workplace culture that supports both employees and students [2][3] - APUS provides flexible remote work options and professional development opportunities, contributing to a positive employee experience [3] Employee Engagement and Satisfaction - APUS employees participated in The Trust Index Survey, which measures trust, pride, and camaraderie within the workplace [1] - Employees at certified workplaces are 93% more likely to look forward to coming to work, highlighting the positive impact of the certification [3] Recognition and Impact - Great Place to Work® is recognized globally as a benchmark for outstanding employee experience, with over 10,000 companies applying for certification annually [5] - The certification is based on employee feedback regarding their workplace experience, emphasizing the importance of a high-trust environment [5] Company Overview - APUS has a 33-year history and serves over 155,000 alumni from more than 80 countries, focusing on affordable and high-quality online education [6] - APUS includes American Military University (AMU) and American Public University (APU) and is accredited by the Higher Learning Commission [7]

Core Insights - The article compares American Public Education (APEI) and Grand Canyon Education (LOPE) to determine which stock offers better value for investors [1] Valuation Metrics - APEI has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to LOPE, which has a Zacks Rank of 3 (Hold) [3] - APEI's forward P/E ratio is 19.47, while LOPE's forward P/E ratio is 22.55, suggesting APEI may be undervalued [5] - APEI has a PEG ratio of 1.30, compared to LOPE's PEG ratio of 1.50, indicating APEI's expected earnings growth is more favorable [5] - APEI's P/B ratio is 1.85, significantly lower than LOPE's P/B ratio of 7.09, further supporting APEI's valuation attractiveness [6] Value Grades - APEI holds a Value grade of A, while LOPE has a Value grade of D, indicating APEI is considered a better value investment [6] - APEI has experienced stronger estimate revision activity and more attractive valuation metrics than LOPE, leading to the conclusion that APEI is the superior option for value investors [7]