The 10-second takeaway
For the quarter ended Dec. 31 (Q2), DeVry missed on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted, and earnings per share dropped significantly.
Margins contracted across the board.
DeVry chalked up revenue of $524.0 million. The 15 analysts polled by S&P Capital IQ predicted a top line of $535.6 million. Sales were 5.0% lower than the prior-year quarter's $551.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.92. The 18 earnings estimates compiled by S&P Capital IQ anticipated $1.00 per share on the same basis. GAAP EPS of $0.13 for Q2 were 90% lower than the prior-year quarter's $1.25 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 54.0%, 430 basis points worse than the prior-year quarter. Operating margin was 16.9%, 770 basis points worse than the prior-year quarter. Net margin was 1.7%, 1,440 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $541.7 million. On the bottom line, the average EPS estimate is $1.08.
Next year's average estimate for revenue is $2.13 billion. The average EPS estimate is $3.81.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 256 members out of 292 rating the stock outperform, and 36 members rating it underperform. Among 101 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 88 give DeVry a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DeVry is outperform, with an average price target of $48.19.
Over the decades, small-cap stocks like DeVry have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add DeVry to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.