DeVry Misses on Both Revenue and Earnings
DeVry (NYS: DV) reported earnings on Jan. 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), DeVry missed on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted, and earnings per share dropped significantly.
Margins contracted across the board.
DeVry chalked up revenue of $524.0 million. The 15 analysts polled by S&P Capital IQ predicted a top line of $535.6 million. Sales were 5.0% lower than the prior-year quarter's $551.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.92. The 18 earnings estimates compiled by S&P Capital IQ anticipated $1.00 per share on the same basis. GAAP EPS of $0.13 for Q2 were 90% lower than the prior-year quarter's $1.25 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 54.0%, 430 basis points worse than the prior-year quarter. Operating margin was 16.9%, 770 basis points worse than the prior-year quarter. Net margin was 1.7%, 1,440 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $541.7 million. On the bottom line, the average EPS estimate is $1.08.
Next year's average estimate for revenue is $2.13 billion. The average EPS estimate is $3.81.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 256 members out of 292 rating the stock outperform, and 36 members rating it underperform. Among 101 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 88 give DeVry a green thumbs-up, and 13 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 $48.19.
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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.
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