DeVry Inc. Earnings: Two Straight Quarters of Profit Drops

S&P 500 (NYSE:SPY) component DeVry Inc. (NYSE:DV) reported its results for the second quarter. 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 Earnings Cheat Sheet for the Second Quarter

Results: Net income for the education and training services company fell to $8.9 million (13 cents per share) vs. $88.7 million ($1.25 per share) a year earlier. This is a decline of 90% from the year earlier quarter.

Revenue: Fell 5% to $524 million from the year earlier quarter.

Actual vs. Wall St. Expectations: DV reported adjusted net income of 92 cents per share. By that measure, the company fell short of mean estimate of $1 per share. It fell short of the average revenue estimate of $535.5 million.

Quoting Management: “We are disappointed with these results,” said Daniel Hamburger, DeVry’s president and chief executive officer. “We are focused on improving our performance by implementing initiatives that will drive revenue growth, while controlling costs. Our performance improvement plan is aimed at increasing new student enrollments, and generating operating efficiencies to reduce expenses, while balancing the necessary investments in academic quality and student services for longer-term growth.”

Key Stats:

The company has now seen net income fall in each of the last two quarters. In the first quarter, net income fell 21.9% from the year earlier quarter.

The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by 13 cents with net income of 83 cents versus a mean estimate of net income of 96 cents per share.

Revenue has fallen in the past two quarters. In the first quarter, revenue declined 0.5% to $519 million from the year earlier quarter.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for third quarter has fallen from $1.12 per share to $1.08. For the fiscal year, the average estimate has moved down from $3.95 a share to $3.79 over the last ninety days.

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).

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

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com