American Public (APEI) Stock Dips Despite Q1 Earnings Beat

Core Insights - American Public Education, Inc. (APEI) reported strong first-quarter 2024 results, with significant improvements in both bottom line and revenues compared to the previous year [1][2] - The company raised its 2024 guidance for revenues and adjusted EBITDA despite a 3.8% decline in shares during after-hours trading [1][7] Financial Performance - APEI reported an adjusted loss of 6 cents per share, surpassing the consensus estimate of a loss of 19 cents by 68.4%, and improved from a loss of 38 cents per share in the prior year [2] - Total revenues reached $154.4 million, exceeding the consensus estimate of $152 million by 1.4% and increasing 3.2% year over year [2] - Total costs and expenses decreased by 3.7% year over year to $149.3 million, aided by reductions in advertising and depreciation costs [2] - Adjusted EBITDA surged 143% year over year to $17.1 million, exceeding the high-end guidance of $10 million, with an adjusted EBITDA margin of 11%, up from 5% [2] Segment Performance - APUS generated revenues of $80.7 million, a 9% increase year over year, driven by growth in registrations and tuition increases [3] - RU reported revenues of $53.1 million, down 8% from $57.5 million a year ago, attributed to lower ADN nursing enrollment, with total student enrollment falling 5.6% [3] - HCN's revenues rose 25% year over year to $16.4 million, supported by a 22% increase in total student enrollment [4] - GSUSA experienced an 18% decline in revenues to $4.2 million, impacted by government spending uncertainty [4] Financial Position - As of the end of the first quarter, APEI had total cash, cash equivalents, and restricted cash of $153.2 million, up from $144.3 million at the end of 2023 [5] Future Guidance - For Q2, APEI expects total revenues to increase by 4%-5% year over year to $153-$155 million, with anticipated profits ranging from a loss of 11 cents to earnings of 5 cents per share [6] - The company raised its 2024 revenue guidance to a growth of 3-5% year over year, now expecting total revenues of $620-$630 million [7]