American Public Education, Inc. (APEI) reported earnings of $0.41 per share for Q1 2025, significantly beating the Zacks Consensus Estimate.
The company’s revenue for the quarter was $164.55 million, exceeding expectations and marking an increase from the previous year.
APEI’s stock rose by 1.8% in after-hours trading following the earnings announcement, indicating strong investor confidence.
American Public Education, Inc. (NASDAQ:APEI) is a leading provider of online and campus-based postsecondary education, serving over 125,000 students through its four subsidiary institutions. Operating within the Zacks Schools industry, APEI has demonstrated significant growth, especially through its Rasmussen University, American Public University System, and Hondros College of Nursing.
On May 14, 2025, Beckett Thomas, APEI’s Senior Vice President and General Counsel, sold 3,000 shares of the company’s common stock at approximately $27.70 each. Despite this transaction, Thomas still holds 57,253 shares. This sale follows APEI’s impressive first-quarter 2025 financial results, which exceeded expectations and bolstered investor confidence.
APEI reported earnings of $0.41 per share for the first quarter of 2025, significantly surpassing the Zacks Consensus Estimate of $0.15 per share. This represents a remarkable earnings surprise of 173.33%, a stark contrast to the $0.06 per share loss reported in the same quarter last year. The company’s revenue for the quarter was $164.55 million, exceeding the Zacks Consensus Estimate by 1.61% and marking an increase from the previous year’s $154.43 million.
The company’s strong performance is attributed to increased enrollment and enhanced operating leverage, particularly within the Rasmussen segment. APEI’s focus on operational improvements has resulted in strong cash flow generation and improved margins. The company’s price-to-earnings (P/E) ratio of approximately 20.08 and a price-to-sales ratio of about 0.78 indicate a favorable valuation, while a debt-to-equity ratio of 0.34 shows a moderate level of debt compared to equity.
Following the earnings announcement, APEI’s stock rose by 1.8% in after-hours trading, reflecting investor optimism. The company’s positive outlook for the second quarter of 2025 further bolsters confidence. APEI’s current ratio of around 3.27 suggests a strong ability to cover short-term liabilities, reinforcing its financial stability.