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.
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