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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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 position in any of the stocks mentioned. 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.