Fubotv earnings beat by $0.10, revenue topped estimates
Northland initiated coverage on American Public Education (NASDAQ:APEI) with an outperform rating and a price target of $36.00 on Wednesday. The stock, which has delivered an impressive 72% return over the past year, currently trades at $28.07. According to InvestingPro analysis, APEI appears slightly undervalued based on its Fair Value calculation.
The research firm described APEI as "a leading provider of post-secondary education" that serves more than 106,000 students through four institutions: American Public University System (APUS), Rasmussen University (RU), Hondros College of Nursing (HCN), and Graduate School USA (GSUSA). With a "GREAT" financial health score and strong liquidity position (current ratio of 3.27), the company maintains a solid operational foundation.
Northland highlighted that APEI "has made significant progress turning around its RU business" while maintaining "a highly profitable APUS business" with EBITDA margins exceeding 30% that can "support growth initiatives."
The firm also noted potential for "meaningful runway for multiple expansion" based on APEI’s current valuation metrics compared to industry peers.
APEI currently trades at approximately 0.6 times projected 2026 revenue while peers trade at 2.1 times, and 4.8 times projected 2026 adjusted EBITDA compared to peers at 9.5 times, according to Northland’s analysis.
In other recent news, American Public Education reported its first-quarter 2025 financial results, revealing that while earnings per share (EPS) missed expectations at $0.41 compared to the forecasted $0.44, revenue exceeded projections, reaching $164.6 million against the anticipated $161.97 million. The company also announced a strategic move to redeem all outstanding shares of its Series A Senior Preferred Stock by June 2025, which will involve a cash outlay of approximately $44.5 million. In terms of analyst activity, Texas Capital Securities initiated coverage of American Public Education with a Buy rating and a price target of $35, highlighting the company’s strategic expansion in the nursing education sector through its acquisition of Rasmussen University.
The earnings call transcript highlighted a robust revenue growth of 6.6% year-over-year, with net income improving to $7.5 million from a loss of $1 million in Q1 2024. Adjusted EBITDA also saw a 25% increase, reflecting strong financial performance. The company’s strategic focus on consolidating educational institutions and expanding nursing programs was noted as a key contributor to this positive outcome. Texas Capital Securities expressed optimism about the company’s future financial performance, suggesting that American Public Education could surpass its fiscal year 2025 earnings guidance.
Furthermore, American Public Education is projecting revenue for the full year 2025 to be between $650 million and $660 million, with adjusted EBITDA expected to range from $77 million to $87 million. The company’s CEO, Angela Selden, emphasized the commitment to serving service-minded students and highlighted the stability of the military education market. The company also plans to simplify operations by combining its institutions into a single consolidated entity, which is expected to close by the end of 2025, pending regulatory approvals.
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