Following the Q2 fiscal 2022 earnings, Aspen Group Inc. (ASPU) plummeted further by 28% premarket. The company announced its second-quarter financial results for fiscal 2022, on December 14.
During regular trading, the stock varied between a high of $2.7631 and a low of $2.60. At a volume of 477.77 thousand shares, ASPU closed the session at $2.6100, losing 4.40%. This downfall was led by the earnings report in the pre market, as the stock fell down to $2.11.
More About ASPU
Headquartered in New York, Aspen Group Inc. (ASPU) is a holding company that provides education. Its two universities include Aspen University and United States University. Currently, the company has 24.99 million shares outstanding in the market. Moreover, the current market capitalization of the company stands at $68.23 million.
In the past five days, ASPU stock has lost 13.58% and over 40.1% last month. Further, it has subtracted 53.06% in the past three months and a whole 76.55% year to date. The company has taken a harsh hit from Covid-19 and its variants throughout 2021.
Currently, the stock is suffering from the before and aftermath of unimpressive earnings. In addition to missed revenue and EPS estimates, ASPU has lowered its FY2022 guidance as well.
Q2 Earnings Report
As per Tuesday’s report, ESPU had revenue of $18.9 million in the second quarter of fiscal 2022. This shows an increase of 12% year-over-year against $17.0 million in the year-ago quarter. Subsequently, the revenue missed the consensus estimate by $1.01 million, for the quarter.
Moreover, the net loss in the second quarter of fiscal 2022, was $2.9 million, against $4.4 million in the prior year’s Q2. This shows an improvement of $1.5 million year-over-year.
Hence, the net loss per basic and diluted share was $0.11 in the Q2 of fiscal 2022, against $0.19 in the year-ago quarter. Consequently, the net loss per share missed the consensus estimate by $0.05 for the Q2 of fiscal 2022.
ASPU attributed the outcomes to the impacts of Covid-19 and shared uncertainty over its future impacts on the company.
ASPU’s Future Outlook
Based on the current financial outcomes and emergence of the omicron variant, the company revised its FY2022 guidance. For the fiscal year 2022, the revised revenue guidance is between $77 million and $80 million. Previously, the expected revenue was in the range of $85 million and $88 million.
Further, the company revised its net loss FY2022, to $9.0 – $7.0 million, against $4.5 – $3.0 million.
