The 10-second takeaway
For the quarter ended March 31 (Q3), DeVry beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins dropped across the board.
DeVry notched revenue of $540.8 million. The 13 analysts polled by S&P Capital IQ wanted to see a top line of $529.4 million on the same basis. GAAP reported sales were 3.9% lower than the prior-year quarter's $562.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.00. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.99 per share. GAAP EPS of $1.00 for Q3 were 24% lower than the prior-year quarter's $1.32 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 54.8%, 380 basis points worse than the prior-year quarter. Operating margin was 17.7%, 670 basis points worse than the prior-year quarter. Net margin was 12.4%, 410 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $515.1 million. On the bottom line, the average EPS estimate is $0.82.
Next year's average estimate for revenue is $2.09 billion. The average EPS estimate is $3.52.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 257 members out of 294 rating the stock outperform, and 37 members rating it underperform. Among 92 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 78 give DeVry a green thumbs-up, and 14 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 $44.93.
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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.