DeVry Earnings: Falls Below Expectations as Net Income Declines

S&P 500 (NYSE:SPY) component DeVry Inc. (NYSE:DV) reported a lower net income in fourth quarter, missing analysts’ estimates. Through its wholly-owned subsidiaries, DeVry 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 Inc. Earnings Cheat Sheet

Results: Net income for DeVry Inc. fell to $8.1 million (12 cents per share) vs. $75.2 million ($1.08 per share) a year earlier. This is a decline of 89.2% from the year-earlier quarter.

Revenue: Fell 7.5% to $505.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: DeVry Inc. fell short of the mean analyst estimate of 79 cents per share. It fell short of the average revenue estimate of $529.5 million.

Quoting Management: “While we are disappointed with the results for this quarter and year, we are optimistic about mid- and long- term growth prospects in higher education and for DeVry,” said Daniel Hamburger, DeVry’s president and chief executive officer. “We are executing a plan to improve DeVry’s near-term performance. The most important elements of the plan are to align our cost structure with our enrollment levels and to regain enrollment growth in our high-quality academic programs.”

Key Stats:

The company has now seen net income fall in each of the last four quarters. In the third quarter, net income fell 27.7% while the figure fell 90% in the second quarter and 21.9% in the first quarter.

Revenue has fallen in the past four quarters. Revenue declined 3.9% to $540.8 million in the third quarter. The figure fell 5% in the second quarter from the year earlier and dropped 0.5% in the first quarter from the year-ago quarter.

The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of $1.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the first quarter of the next fiscal year is 63 cents per share, down from 73 cents ninety days ago. At $3.53 per share, the average estimate for the fiscal year has fallen from $3.61 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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