Education Earnings Lined Up for the Next Few Days: DV, APEI

The U.S economy is in a far better shape than the past few years. But as President Obama recently put it, citizens who had a rough time during the 2007-2008 recession are yet to recover from the "trauma".

There is still reluctance among students to enroll in academic programs and take loans to fund them. They would rather accept whatever job offer they can get and pay their bills.  Though the employment situation is improving, wages are still low. It will take some time for students to realize that better education and skills will improve their career prospects in the years to come, compared to the low skill or no skill jobs that they are currently engaged in. In the current scenario, while some education companies are doing well, things are not as positive for the others.

Capella Education Company CPLA reported solid results for the first quarter of 2016 and provided an optimistic outlook for the second quarter of 2016 on Apr 26. The education company's first quarter earnings of 86 cents per share surpassed the Zacks Consensus Estimate of 81 cents by 6.17%. Total active enrollment increased during the quarter owing to improved early-cohort persistence and higher percentage of returning learners. Moreover, the company's acquisition of Hackbright Academy on Apr 22, which will further strengthen its initiatives in non-degree programs, is encouraging.

Another education company TAL Education Group XRS performed well in the fourth quarter of fiscal 2016, the results of which were reported on Apr 28. The company reported strong enrollment levels on the back of increased demand for small class offerings and online courses. The company expects "enrollment-driven growth in fiscal year 2017".

However, things have not been favorable for some other education companies, including ITT Educational Services, Inc. ESI and Apollo Education Group, Inc. APOL, which also reported in April. Both the companies posted disappointing quarterly results. ITT Educational Services reported earnings per share of 17 cents in the first quarter of 2016, missing the Zacks Consensus Estimate of 19 cents by 10.5%. On the other hand, Apollo Education's adjusted loss (excluding special items) of 31 cents per share in the second quarter of fiscal 2016 was wider than the Zacks Consensus Estimate of a loss of 10 cents by a massive 210%.

The results were primarily hurt by a decline in enrollment levels. Both these companies are taking several initiatives to drive enrollment levels and improve overall health of the company, but things do not seem to be rolling at the moment.

ITT Educational Services suffered as a result of the closure of the enrollment process across some of the campus locations and lower conversion rate.

On the other hand, Apollo Education Group's enrollments have been sluggish for several quarters now due to regulatory challenges, and changes and competition in the higher education industry. In fact, Apollo Education Group is expected to be acquired by a consortium of investors in Aug 2016.

Two more companies from the education sector, DeVry Education Group Inc. DV and American Public Education, Inc. APEI are set to report their quarterly results soon. Let's see how things are shaping up for the announcements.

DeVry Education Group  

Headquartered in Downers Grove, IL, DeVry Education Group is set to report third quarter fiscal 2016 results on May 5. It posted a positive surprise of 3.03% last quarter. Moreover, the company has surpassed estimates in three out of the past four quarters, resulting in an average positive surprise of 0.50%.

The company has an Earnings ESP of +3.28% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the quarter is pegged at 61 cents.

American Public Education

An online provider of higher education, American Public Education will report first quarter 2016 results on May 9. It posted a positive surprise of 38.89% last quarter. Moreover, the company surpassed estimates in three out of the past four quarters, resulting in an average positive surprise of 11.05%.  

The company has an Earnings ESP of +0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter is pegged at 45 cents.

Stay Tuned! Check later on our full write-up on earnings releases of these stocks.

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DEVRY EDUCATION DV: Free Stock Analysis Report
 
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ITT EDUCATIONAL ESI: Free Stock Analysis Report
 
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