The 10-second takeaway
For the quarter ended June 30 (Q4), DeVry met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped significantly.
Margins dropped across the board.
DeVry reported revenue of $505.9 million. The 16 analysts polled by S&P Capital IQ hoped for revenue of $507.4 million on the same basis. GAAP reported sales were 7.5% lower than the prior-year quarter's $546.8 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 $0.47. The 16 earnings estimates compiled by S&P Capital IQ averaged $0.44 per share. GAAP EPS of $0.12 for Q4 were 89% lower than the prior-year quarter's $1.08 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 50.2%, 690 basis points worse than the prior-year quarter. Operating margin was 8.2%, 1,180 basis points worse than the prior-year quarter. Net margin was 1.6%, 1,220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $479.7 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $1.98 billion. The average EPS estimate is $1.92.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 268 members out of 310 rating the stock outperform, and 42 members rating it underperform. Among 88 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 73 give DeVry a green thumbs-up, and 15 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 $38.07.
- 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. The Motley Fool has no positions in the stocks mentioned above. 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.