The 10-second takeaway
For the quarter ended Dec. 31 (Q2), DeVry beat slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins dropped, net margins grew.
DeVry recorded revenue of $505.2 million. The 15 analysts polled by S&P Capital IQ expected a top line of $497.2 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.87. The 17 earnings estimates compiled by S&P Capital IQ averaged $0.58 per share. GAAP EPS of $0.78 for Q2 were 500% higher than the prior-year quarter's $0.13 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 51.8%, 220 basis points worse than the prior-year quarter. Operating margin was 14.9%, 200 basis points worse than the prior-year quarter. Net margin was 10.0%, 830 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $520.2 million. On the bottom line, the average EPS estimate is $0.72.
Next year's average estimate for revenue is $2.00 billion. The average EPS estimate is $2.19.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 264 members out of 309 rating the stock outperform, and 45 members rating it underperform. Among 96 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give DeVry a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DeVry is hold, with an average price target of $26.31.
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