The 10-second takeaway
For the quarter ended March 31 (Q3), DeVry missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share contracted. GAAP earnings per share shrank.
Margins contracted across the board.
DeVry notched revenue of $508.8 million. The 13 analysts polled by S&P Capital IQ hoped for a top line of $516.7 million on the same basis. GAAP reported sales were 5.9% lower than the prior-year quarter's $540.8 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 $0.90. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.83 per share. Non-GAAP EPS of $0.90 for Q3 were 10% lower than the prior-year quarter's $1.00 per share. GAAP EPS of $0.88 for Q3 were 12% lower than the prior-year quarter's $1.00 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 52.6%, 220 basis points worse than the prior-year quarter. Operating margin was 14.9%, 280 basis points worse than the prior-year quarter. Net margin was 11.2%, 120 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $498.7 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $2.00 billion. The average EPS estimate is $2.66.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 257 members out of 300 rating the stock outperform, and 43 members rating it underperform. Among 91 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 77 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 $31.43.
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