DeVry Earnings: College Education Bubble Continues

S&P 500 (NYSE:SPY) component DeVry Inc. (NYSE:DV) reported net income above Wall Street’s expectations for the third quarter. Through its wholly-owned subsidiaries, DeVry, Inc. owns and operates DeVry University, Chamberlain College of Nursing, U.S. Education, Ross University, Becker Professional Education and Advanced Academics.

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DeVry Earnings Cheat Sheet for the Third Quarter

Results: Net income for the education and training services company rose to $92.9 million ($1.32/share) vs. $81.2 million ($1.12/share) in the same quarter a year earlier. A rise of 14.5% from the year earlier quarter.

Revenue: Rose 11.6% to $562.7 million YoY.

Actual vs. Wall St. Expectations: DV beat the mean analyst estimate of $1.23/share. Estimates ranged from $1.16 per share to $1.33 per share.

Quoting Management: “Our diversification strategy and focus on enhancing academic quality to support long term growth continue to serve us well,” said Daniel Hamburger, DeVry’s president and chief executive officer. “Total enrollment growth across our family of degree-granting schools was 7.6 percent in the spring. While Carrington and DeVry University undergraduate new student enrollments experienced softness during this period, strong growth within Chamberlain, Keller and DeVry Brasil helped to offset the weakness. This demonstrates the value of our diversification strategy and allows DeVry to continue to make investments in the quality of its academic programs and services.”

Key Stats:

The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 21.1%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 28.7% from the year earlier quarter.

The company has now seen net income rise in three-straight quarters. In the second quarter, net income rose 22.4% and in the first quarter, the figure rose 34.5%.

From the second quarter, the company’s current liabilities rose to $599.4 million from $456.8 million.

Competitors to Watch: Apollo Group, Inc. (NASDAQ:APOL), Career Education Corp. (NASDAQ:CECO), American Public Education, Inc. (NASDAQ:APEI), National American Univ. Hldgs., Inc. (NASDAQ:NAUH), Corinthian Colleges, Inc. (NASDAQ:COCO), Grand Canyon Education Inc (NASDAQ:LOPE), Bridgepoint Education, Inc. (NYSE:BPI), Education Management Corp (NASDAQ:EDMC), Strayer Education, Inc. (NASDAQ:STRA), and The Washington Post Co. (NYSE:WPO).

Today’s Performance: Shares of DV are unchanged in after hours trading.

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