DeVry Earnings: Here’s Why the Stock is Falling Now

DeVry, Inc. (NYSE:DV) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 9%.

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DeVry, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 10% to $0.90 in the quarter versus EPS of $1.00 in the year-earlier quarter.

Revenue: Decreased 5.93% to $508.75 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: DeVry, Inc. reported adjusted EPS income of $0.90 per share. By that measure, the company beat the mean analyst estimate of $0.82. It missed the average revenue estimate of $516.64 million.

Quoting Management: “While most of our institutions are performing well, we were disappointed with new student enrollment at DeVry University,” said Daniel Hamburger, DeVry’s president and chief executive officer. “We are focused on better communicating the return on educational investment of DeVry University degrees to potential students. In addition, we are aggressively managing our costs and now expect to achieve $100 million in cost savings this fiscal year.”

Key Stats (on next page)…

Revenue increased 0.69% from $505.24 million in the previous quarter. EPS increased 3.45% from $0.87 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.39 to a profit $0.46. For the current year, the average estimate has moved up from a profit of $2.15 to a profit of $2.66 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]