American Public Education net income beats Street but shares plunge on lower 2010 outlook

American Public Ed shares tank on 2010 guidance

CHARLES TOWN, W.Va. — Online university company American Public Education Inc. said Thursday its net income rose 32 percent to beat Wall Street’s expectations but shares sank in extended trading after the company slashed its full-year guidance as military student enrollments dropped.

For April through June, American Public Education’s net income rose to $7 million, or 37 cents per share, from $5.3 million, or 28 cents per share, in the same period last year.

Revenue climbed 30 percent to $46.3 million from $35.7 million.

Analysts surveyed by Thomson Reuters had forecast net income of 33 cents per share on $46.4 million in revenue.

The online university said in a statement that course registrations from students on active military duty have fallen. It believes the drop is due in part to increased operations and recent deployments, in particular to soldiers being sent to areas with limited Internet access.

The company said it will speed its efforts to draw more nonmilitary students.

The company slashed its forecast for 2010 and now expects net income to rise between 5 percent and 10 percent and revenue to increase between 29 percent and 31 percent.

Shares plunged $12.07, or 28.3 percent, to $30.60 in extended trading. Earlier, the stock had shed $2.12, or 4.7 percent, to close at $42.67.

The company also said Thursday its board authorized a program to repurchase up to $20 million of stock.