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What: Shares of DeVry Education Group Inc (NYSE:DV) were looking sharper today, gaining as much as 18% after the company turned in a top-notch earnings report last night.
So what: The for-profit educator said profits slipped from $0.88 a year ago to $0.86, though that was well ahead of analyst estimates at $0.75. Revenue also fell slightly, dropping 1.5% to $496.1 million, matching the Wall Street view. CEO Daniel Hamburger said the company made solid progress on "our plan to turn around and transform DeVry University," including slowing new student enrollment decline and speeding up cost reduction initiatives.
Now what: DeVry shares hit a new 52-week high on the news, as total enrollment was up by 1.7%, or 2,020 students, to 121,643, and across all of DeVry schools new student enrollment increased 12%, propelled by additions in DeVry Brazil and its Chamberlain College of Nursing. New student enrollment is seen as a key indicator of performance in the education industry as incoming students are the best gauge of future revenue. Based on the strength of its Brazil outlet and the nursing school, as well as turnaround efforts at DeVry University, I wouldn't be surprised to see sales and profits return to growth shortly.
Jeremy Bowman has no position in any stocks mentioned, and neither does The Motley Fool. 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.