DeVry Inc. First Quarter Earnings Sneak Peek

DeVry Inc. (NYSE:DV) will unveil its latest earnings on Thursday, October 25, 2012. 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.

DeVry Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 30 cents per share, a decline of 63.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 63 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 31 cents during the last month. Analysts are projecting profit to rise by 41.6% compared to last year’s $1.88.

Past Earnings Performance: Last quarter, the company fell in line with estimates by reporting net income of 47 cents per share. The company also met expectations in the third quarter of the last fiscal year.

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A Look Back: In the fourth quarter of the last fiscal year, profit fell 89.2% to $8.1 million (13 cents a share) from $75.2 million ($1.08 a share) the year earlier, meeting analyst expectations. Revenue fell 7.5% to $505.9 million from $546.8 million.

Stock Price Performance: Between August 23, 2012 and October 19, 2012, the stock price had risen $2.12 (10.9%), from $19.43 to $21.55. The stock price saw one of its best stretches over the last year between June 21, 2012 and July 3, 2012, when shares rose for nine straight days, increasing 17.6% (+$4.73) over that span. It saw one of its worst periods between July 11, 2012 and July 30, 2012 when shares fell for 14 straight days, dropping 36.3% (-$10.87) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.27 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 0.5% in the first quarter of the last fiscal year, 5% in second quarter of the last fiscal year and 3.9% in the third quarter of the last fiscal year and then fell again in the fourth quarter of the last fiscal year of the last fiscal year.

The company is trying to stem some negative momentum heading into this earnings announcement. Profit has dropped by a year-over-year average of 57.2% over the past four quarters.

Wall St. Revenue Expectations: Analysts predict a decline of 7.1% in revenue from the year-earlier quarter to $482.2 million.

Analyst Ratings: There are mostly holds on the stock with eight of 14 analysts surveyed giving that rating.

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

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