Aspen Group, Inc. (ASPU), an education technology company, has plunged 18.77% in aftermarket trading session. As a result, ASPU stock is trading at $2.12 at the time of the writing. On Tuesday, ASPU stock closed the day at $2.61 after declining 4.40% during the regular trading session. The consistent decline could be attributable to the announcement of quarterly results.
ASPU Q2 2022 Operational Results
On Tuesday, ASPU released the operational results for the second quarter of the fiscal year 2022. The quarter ended on 31st October 2021. The company generated total revenue of $18.9 million during the quarter against $16.9 million for the same quarter of fiscal 2021. The total operating expenses bore by the company during the three months were $21.5 million against $19.7 million for the same period of fiscal 2021. The net loss suffered by the company during the quarter was $2.8 million (or $0.11 per basic and diluted share) against $4.3 million (or $0.19 per basic and diluted share) for the same period of fiscal 2021.
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Financial Guidance for FY 2022
Alongside the operational results, ASPU also released the updated financial guidance for fiscal 2022. The company expects the revenue to stand between $77 million and $80 million during fiscal 2022. The net loss for the period is expected to be in the range of $9 million and $7 million. The GAAP loss per share for the fiscal is expected to lie between $0.38 and $0.29. The company expects the adjusted EBITDA to stand in the range of $2 million and zero.
Michael Mathews, Chairman and CEO of ASPU, while commenting on the results said that the company performed tremendously during the quarter as the careful management of costs reduced the net loss by 35% year-over-year. The rapid rise of COVID increased the workload of RN’s, which represents 69% of the company’s total active student body at the end of the quarter. The company anticipates an increase in its revenue during the upcoming quarters.
Future Outlook for ASPU
During the last three months, ASPU stock has declined more than 40%. The decrease in the share price is the result of negative sentiments associated with the stock during the period. Analysts believe that the stock is ripe for potential investors to invest for long-term and earn the benefits.