American Public Education
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), American Public Education beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded. GAAP earnings per share increased slightly.
Gross margins expanded, operating margins shrank, net margins dropped.
American Public Education logged revenue of $86.0 million. The 11 analysts polled by S&P Capital IQ hoped for sales of $84.9 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $75.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.74. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.67 per share. Non-GAAP EPS of $0.74 for Q4 were 4.2% higher than the prior-year quarter's $0.71 per share. GAAP EPS of $0.73 for Q4 were 2.8% higher than the prior-year quarter's $0.71 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 65.5%, 10 basis points better than the prior-year quarter. Operating margin was 24.9%, 130 basis points worse than the prior-year quarter. Net margin was 15.3%, 190 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $85.3 million. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $350.3 million. The average EPS estimate is $2.64.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 256 members out of 269 rating the stock outperform, and 13 members rating it underperform. Among 99 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 95 give American Public Education a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on American Public Education is outperform, with an average price target of $40.27.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends American Public Education. The Motley Fool owns shares of American Public Education. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.