Diamonds and Dogs

11/08/12

American Public Education Inc. (APEI)

American Public Education received its third quarter report card today and is failing with shares trading down 8.58% at $32.94. The post-secondary online education company saw its shares crash after releasing their latest earnings report. The earnings report was not terrible but American Public's fourth quarter guidance scared investors away. Management said new student course registration would decline in the fourth quarter and that EPS is expected to be between $0.64 and $0.67 per share, well below analyst estimates of $0.73 per share. American Public Education is trading right in the middle of its 52-week range, with volume quadrupling today.

Rosetta Stone Inc. (RST)

Rosetta Stone is translating operations to profit today, up 22.25% at $12.91. The technology based language company saw shares jump after a positive earnings report. Rosetta Stone announced revenue of $64.3 million, beating analyst estimates of $61.0 million. Furthermore, gross margin was 82.6%, 20 basis points better than the prior-year quarter. Both of these factors caused estimates for the next quarter to increase dramatically, with average estimates for revenue reaching $79.1 million, and the average EPS estimate climbing to $0.06. Rosetta Stone is speaking investors language today, up 100% from its 52-week low and closing in on its 52-week high.

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