American Public Education, Inc. Just Recorded A 28% EPS Beat: Here's What Analysts Are Forecasting Next
American Public Education, Inc. (NASDAQ:APEI) just released its third-quarter report and things are looking bullish. The company beat forecasts, with revenue of US$169m, some 2.0% above estimates, and statutory earnings per share (EPS) coming in at US$0.32, 28% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from American Public Education's seven analysts is for revenues of US$738.3m in 2027. This would reflect a decent 9.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 24% to US$3.13. Before this earnings report, the analysts had been forecasting revenues of US$734.6m and earnings per share (EPS) of US$3.02 in 2027. So the consensus seems to have become somewhat more optimistic on American Public Education's earnings potential following these results.
View our latest analysis for American Public Education
There's been no major changes to the consensus price target of US$60.50, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic American Public Education analyst has a price target of US$68.00 per share, while the most pessimistic values it at US$52.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 7.6% growth on an annualised basis. That is in line with its 7.2% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.6% annually. It's clear that while American Public Education's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around American Public Education's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for American Public Education going out to 2028, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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